Mortgage rates opened the week unchanged from Sunday, with purchase averages still a few basis points above the matching refinance quotes.
On Monday, August 31, 2026, the average 30-year fixed purchase rate was 6.55%, matching Sunday’s Zillow lender marketplace print. The 15-year fixed purchase rate held at 5.91%, and the 5/1 ARM remained at 6.26%. Monday’s published list did not include a separate day-over-day change; every product in both tables printed at Sunday’s level.
Freddie Mac’s latest weekly survey, covering applications through August 27, still puts the 30-year average at 6.66%, one basis point above the prior week’s 6.65%. Inflation remains above the Federal Reserve’s 2% target, and Chair Kevin Warsh’s Jackson Hole remarks on Friday kept investors focused on the September 15–16 policy meeting. For homebuyers, a 6.55% 30-year average and elevated home prices still put monthly affordability at the center of every purchase decision.
Mortgage Rates Today: August 31, 2026
The latest national daily purchase averages from the Zillow lender marketplace were:
- 30-year fixed: 6.55%
- 20-year fixed: 6.46%
- 15-year fixed: 5.91%
- 5/1 ARM: 6.26%
- 7/1 ARM: 6.11%
- 30-year VA: 6.11%
- 15-year VA: 5.91%
- 5/1 VA: 6.02%
These figures are national averages, so individual borrowers may receive different rates based on credit, down payment, loan type, property and other factors.
Monday’s 30-year purchase average is 4 basis points above the 30-year refinance average. The 15-year purchase average is 2 basis points higher than the 15-year refinance quote, and the 5/1 ARM purchase rate is 7 basis points higher than the matching refinance ARM. Sunday’s weekly comparison, which Monday did not repeat, had the 30-year purchase rate 18 basis points above the prior week and the 5/1 ARM 48 basis points lower.
Refinance Rates Today
Homeowners considering a refinance are also facing mid-6% costs, though several refinance averages sit slightly below purchase pricing.
The latest refinance averages included:
- 30-year fixed: 6.51%
- 20-year fixed: 6.48%
- 15-year fixed: 5.89%
- 5/1 ARM: 6.19%
- 7/1 ARM: 6.41%
- 30-year VA: 6.07%
- 15-year VA: 5.58%
- 5/1 VA: 5.58%
A refinance is a new loan. A few basis points between averages do not, by themselves, tell a homeowner whether replacing an existing mortgage is worthwhile.
Inflation, the Fed and the Bond Market
The latest official inflation print remains July’s personal consumption expenditures report. Headline PCE prices rose 3.7% from a year earlier, and core PCE rose 3.3%. The Bureau of Economic Analysis is next scheduled to release August figures on September 30. Both July readings remain above the Fed’s 2% goal.
Persistent inflation can keep longer-term Treasury yields elevated, which makes it harder for mortgage rates to fall by much. The public delayed mortgage-backed securities tape heading into Monday showed the 10-year Treasury yield near 4.71%, with only a small overnight change, and UMBS 6.0% coupons a little above par.
Warsh’s first Jackson Hole keynote as chair, delivered Friday, emphasized that inflation is still too high. Markets treated the speech as opening the door to a possible hike later this year. Mortgage rates do not move one-for-one with the federal funds rate, but a shift in expected policy can still move Treasuries and MBS spreads.
The calendar between now and the FOMC meeting is short. The Bureau of Labor Statistics is scheduled to release the August employment report on Friday, September 4, producer prices on September 10, and consumer prices on September 11. The Fed meets September 15–16. Those dates will likely matter more for the next move in mortgage rates than Monday’s unchanged averages.
30-Year Fixed Mortgage Rates
The 30-year fixed loan remains the usual choice if a borrower wants a predictable principal-and-interest payment.
At 6.55%, Monday’s average is unchanged from Sunday. Spreading repayment over 360 months keeps the payment lower than a shorter term of the same size.
For example, a $400,000 30-year mortgage at 6.55% would have principal-and-interest payments of roughly $2,541 per month, before property taxes, homeowners insurance, mortgage insurance and other housing expenses.
15-Year Mortgage Rates
The average 15-year purchase rate is 5.91% today, 64 basis points below the 30-year average.
The shorter term usually carries a lower rate and builds equity faster. The monthly payment is the constraint. A $400,000 15-year loan at 5.91% would have principal-and-interest payments of roughly $3,356 per month — about $815 more per month than the 30-year example, in exchange for cutting the term in half.
ARM Rates
Adjustable-rate mortgages on Monday start below the 30-year fixed average.
The 5/1 ARM purchase average is 6.26%, 29 basis points below the 30-year fixed rate. The 7/1 ARM is 6.11%, 44 basis points below the 30-year. A 5/1 ARM stays fixed for five years, then adjusts annually. A 7/1 ARM does the same for seven years.
An ARM can fit if a borrower expects to sell or refinance before the first adjustment and understands the caps. It is a weaker fit if the payment needs to stay unchanged for as long as the home is owned. Run the fully indexed payment, not just the introductory rate.
VA averages in this series often run below conventional loans. Monday’s 30-year VA purchase rate is 6.11%. The 15-year VA is 5.91%, and the 5/1 VA is 6.02%. Eligibility and funding-fee details still matter more than the headline.
Should Homeowners Refinance?
The average 30-year refinance rate is 6.51%, 4 basis points below the purchase average. The 15-year refinance rate is 5.89%.
A refinance is worth a closer look only if the new rate, term and costs improve the position after fees. The basic screen is the break-even period. The following example is hypothetical.
Suppose refinancing costs $6,000 and lowers the payment by $250 a month. The simple break-even is 24 months. If the homeowner expects to keep the home and the new loan well beyond that point, the math can work. If a sale is likely next year, the closing costs may not be recovered.
Monday’s 4-basis-point gap is much smaller than that example. On a $400,000 loan, 6.51% instead of 6.55% changes principal and interest by only about $11 per month. That kind of spread does not pay for typical closing costs. Homeowners who already hold a much lower pandemic-era rate rarely benefit from a rate-and-term refinance.
What Today’s Rates Mean for Buyers and Homeowners
For buyers, loan size still dominates the payment. A larger down payment or a lower-priced home can change monthly cost more than an unchanged 6.55% national average. Look at the full housing payment: principal, interest, taxes, insurance, HOA dues if any, and a maintenance reserve.
For homeowners, today’s refinance averages are close to purchase pricing, not a broad invitation to refinance. Compare the current note rate, remaining term, cash needed to close and how long the household expects to stay. If the existing rate is already below 6.51%, a rate-and-term refinance is unlikely to help.
Should You Wait?
There is no reliable way to know the lowest mortgage rate of the next several months.
Waiting helps if a buyer is not ready — if the down payment, credit or cash reserve still needs work. Waiting only because a large decline is expected is a forecast, not a plan.
If rates fall, more buyers can qualify, which can raise competition and, in some markets, prices. If rates rise after a firm jobs or CPI print, the same house costs more each month. Buy when the whole transaction works at a rate that has actually been quoted.
How Borrowers Can Get Better Terms
No borrower sets the national average. The quote on a given file can still improve.
- Review credit reports and correct errors before applying.
- Reduce revolving balances if that will lower the debt-to-income ratio.
- Increase the down payment when it does not empty cash reserves.
- Compare a few Loan Estimates, not just advertised rates.
- Weigh discount points against how long the loan will actually be kept.
- For VA-eligible borrowers, compare the 6.11% 30-year VA average with conventional pricing after fees and down-payment differences.
The cheapest loan is the one with the lowest total cost over the period it will actually be kept.
The Bottom Line
The mortgage market started the week unchanged and still in a high-rate environment.
The 30-year fixed purchase rate was 6.55% on August 31, 2026, matching Sunday’s average, while the 30-year refinance average was 6.51%. Freddie Mac’s weekly 30-year figure remains 6.66%. The 15-year purchase rate held at 5.91%, and the 5/1 ARM held at 6.26%.
July core PCE inflation is still 3.3%, with headline PCE at 3.7%. The next tests for the bond market are the August jobs report on September 4, PPI on September 10, CPI on September 11 and the Fed’s September 15–16 meeting. For buyers, the useful question is whether a quoted payment fits the budget at 6.55%. For homeowners, refinancing is a break-even problem, not a headline problem.