Mortgage rates eased off their one-year highs this week, as markets continue to await signs of a resolution to the Iran war.
Mortgage rates eased off their one-year highs this week, as markets continue to await signs of a resolution to the Iran war and normalization of global oil prices.
The average rate on 30-year fixed home loans dipped to 6.67% for the week ending Aug. 13, down 2 basis points from 6.69% the previous week, according to Freddie Mac.
However, rates remain above their year-ago level after crossing that key threshold last week for the first time in 2026. For perspective, rates averaged 6.58% during the same period in 2025.
"Mortgage rates remained relatively stable this week at 6.67%," says Sam Khater, Freddie Mac's chief economist. "Housing affordability has improved from a year ago, and recent increases in purchase and refinance applications suggest that borrowers continue to respond to even modest changes in mortgage rates."
Mortgage rates have closely followed oil prices in recent months, amid concerns that soaring energy costs could drive a sustained increase in inflation. Last week, rumors of a peace deal to reopen the critical Straight of Hormuz helped push crude oil prices lower, and rates briefly followed.
The reprieve was short lived, however. Hopes for a deal feel apart as Tehran pushed for "service fees" to transit the straight, as well as complete cessation of a U.S. blockade on Iranian ports, sanctions lifting, and war reparations.
President Donald Trump on Wednesday insisted the U.S. has "total control" over the Strait of Hormuz, a claim Iran has disputed. Meanwhile cargo vessel traffic through the chokepoint plunged to a one-week low of just eight vessels, according to Reuters.
"The 10-year Treasury yield has increased only slightly this week as the conflict in Iran has drawn on, putting pressure on oil prices and thereby expectations of future inflation," says Realtor.com® senior economist Joel Berner.
The 10-year Treasury, a key benchmark for mortgage rates, dipped last week amid rumors of a peace deal, but have drifted higher as negotiations fizzled.
Earlier this week, capital markets firm Optimal Blue projected that mortgage rates would reach 6.76% in three months, then moderate slowly back down to 6.58% in 12 months.
"All told, there is little downward pressure on mortgage rates between a Middle East conflict that’s keeping inflation high and a Federal Reserve that’s laser-focused on driving that inflation lower," says Berner. "Current mortgage rate levels may become quite familiar in the months ahead."
(Realtor.com) How your credit score affects your mortgage
Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.
The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.
Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates, which can reduce monthly payments.
Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. Ultimately, they want to make sure you're able to pay back the loan.