Yes, mortgage interest rates are higher today, but only by a little.
The average interest rate on a 30-year, fixed-rate mortgage rose to 6.64% APR, according to rates provided to NerdWallet by Zillow. This is eight basis points higher than yesterday and 10 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.
This comes after a major inflation report dropped this morning, which showed that inflation is running above expectations — and above the Federal Reserve’s target.
Average mortgage rates, last 30 days
🤓 Kate on Rates: August 20, 2026
📈 What influences mortgage rates?
This morning, the Bureau of Economic Analysis released the Personal Consumption Expenditures Price Index, which is the Federal Reserve’s preferred measure of inflation. The data showed that inflation rose 0.2% in July, slightly above Wall Street’s forecast of 0.1%. This puts the year-over-year rate of inflation at 3.7% — the same as the previous month, and well above the Fed’s goal of 2%.
“The [Federal Open Market Committee] seems to have a lot more confidence that inflation will subside on its own than the markets do,” says Kate Wood, lending expert at NerdWallet. “Fears that inflation will continue unabated have been driving bond yields — and mortgage rates — up.”
This discrepancy between market sentiment and Fed expectations is especially clear when looking at the forecast for central bankers’ next meeting. Typically, higher-than-predicted inflation would fuel speculation that central bankers might raise the overnight borrowing rate.
Instead, the futures traders behind CME FedWatch are currently predicting about 60% odds that the Fed will hold rates steady again in September, which is the same as it was before this latest inflation data drop.
Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).
With rates where they are right now, you may want to start considering a refi if your current rate is around 7.14% or higher.
🏡 Should I start shopping for a home?
There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.
🔒 Should I lock my rate?
Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.
🤓 Nerdy Reminder: Rates can change daily, and even hourly. If you’re happy with the deal you have, it’s okay to commit.
🧐 Why is the rate I saw online different from the quote I got?
In addition to market factors outside of your control, your customized quote depends on your:
Even two people with similar credit scores might get different rates, depending on their overall financial profiles.
👀 If I apply now, can I get the rate I saw today?
Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.
