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Mortgage rates dropped last week despite heightened bond market volatility: Mortgage and refinance interest rates today, Thursday, August 20, 2026
Claire Boston · Senior Reporter
Thu, August 20, 2026 at 7:02 PM GMT+3 5 min read
Mortgage rates fell slightly during a dramatic week for bond markets that saw the 30-year Treasury yield hit its highest level since 2007, prompting the US Treasury to boost its buybacks of long-term debt.
The average 30-year fixed-rate mortgage was 6.65% this week through Wednesday, from 6.67% a week earlier, according to Freddie Mac data.
Long-term government bond yields briefly topped 5.3%, the highest level in 19 years, on Tuesday as Wall Street fretted about inflation and the US's growing fiscal deficit. On Wednesday, the Treasury said it was doubling the size of its long-term bond buying program to support prices and bring interest rates down. Yields fell sharply in response, before jumping again on Thursday.
Because most homeowners end up refinancing or selling before their 30-year term is up, mortgage rates more closely track the 10-year Treasury yield. The 10-year yield saw smaller swings this week than longer-dated bonds, but the factors that led to this week's market shock mean that mortgage rates aren't likely to fall, and may even rise somewhat, in the weeks ahead.
"The action at the long end of the curve underscores fears over inflation and the fiscal outlook, and that could put upward pressure on mortgage rates in the coming weeks," Jake Krimmel, senior economist at Realtor.com, said in a statement. "No doubt, this is a tough setup heading into late summer and early fall, a stretch that traditionally suits buyers quite nicely."
"Mortgage borrowers should remember that while Treasury yields were mechanically pushed down, the underlying forces behind their rise – the government deficit, oil shock, and AI debt – haven't faded and will likely put a floor under how far mortgage rates can fall," Kara Ng, senior economist at Zillow, said in a statement.
Read more: Discover the best mortgage refinance lenders
Today's mortgage rates
Here are the current mortgage rates, according to our latest Zillow data, for Thursday, August 20, 2026:
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30-year fixed: 6.52%
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20-year fixed: 6.29%
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15-year fixed: 5.92%
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5/1 ARM: 6.54%
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7/1 ARM: 6.34%
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30-year VA: 6.06%
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15-year VA: 5.54%
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5/1 VA: 5.71%
Remember that these are the national averages and are rounded to the nearest hundredth.
Today's mortgage refinance rates
These are the current mortgage refinance rates, according to the latest Zillow data for Thursday, August 20, 2026:
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30-year fixed: 6.59%
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20-year fixed: 6.42%
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15-year fixed: 5.99%
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5/1 ARM: 6.52%
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7/1 ARM: 6.43%
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30-year VA: 6.11%
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15-year VA: 5.90%
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5/1 VA: 5.74%
As with mortgage rates for purchase, these are national averages that we've rounded to the nearest hundredth. Refinance rates can be higher than purchase mortgage rates, but that isn't always the case.
Monthly mortgage payment calculator
Use the mortgage calculator below to see how various mortgage rates will impact your monthly payments.
Mortgage payment calculator
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Check rates 
Check rates You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders. Be sure to use the dropdown to include private mortgage insurance costs and HOA dues if they apply to you. These monthly expenses, along with your mortgage principal and interest rate, will give you a realistic idea of what your monthly payment could be.
How do mortgage rates work?
A mortgage interest rate is the fee a lender charges for borrowing money, expressed as a percentage. There are two basic types of mortgage rates: fixed and adjustable rates.
A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you get a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30 years. (Unless you refinance or sell the home.)
An adjustable-rate mortgage keeps your rate the same for the first few years, then changes it periodically. Let's say you get a 5/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first five years, then increase or decrease once per year for the remaining 25 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and the U.S. housing market.
At the beginning of your mortgage term, most of your monthly payment goes toward interest. As time passes, less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.
Read more: Learn how to choose between an adjustable-rate vs. fixed-rate mortgage.
How are mortgage rates determined?
Two categories determine mortgage rates: those you can control and those you cannot.
What factors can you control? First, you can compare the best mortgage lenders to find the one that gives you the lowest rate and fees.
Second, lenders typically extend lower rates to people with higher credit scores, lower debt-to-income (DTI) ratios, and considerable down payments. If you can save more or pay down debt before securing a mortgage, a lender will probably give you a better interest rate.
What factors can you not control? In short, the economy.
The list of ways the economy impacts mortgage rates is long, but here are the basic details. If the economy — for example, employment rates — is struggling, mortgage rates decrease to encourage borrowing, which helps boost the economy. If the economy is strong, mortgage rates go up to temper spending.
With all other factors being equal, mortgage refinance rates are typically slightly higher than purchase rates. So don't be surprised if your refinance rate is higher than you may have expected.
30-year vs. 15-year fixed mortgage rates
Two of the most common mortgage terms are 30-year and 15-year fixed-rate mortgages. Both lock in your rate for the entire loan term.
A 30-year mortgage is popular because it has relatively low monthly payments. But it comes with a higher interest rate than shorter terms, and because you're accumulating interest for three decades, you'll pay a lot of interest in the long run.
A 15-year mortgage can be a good choice because it has a lower rate than you'll get with longer terms, so you'll pay less in interest over the years. You'll also pay off your mortgage much faster. But your monthly payments will be higher because you're paying off the same loan amount in half the time.
Basically, 30-year mortgages are more affordable from month to month, while 15-year mortgages are cheaper in the long run.
Current mortgage rates: FAQs
What bank is offering the lowest mortgage rates?
According to Yahoo Finance's weekly survey of lenders with the lowest rates, some of the banks with the lowest median mortgage rates are Chase and Citibank. However, it's a good idea to shop around for the best rate, not just with banks, but also with credit unions and companies specializing in mortgage lending.
Is 2.75% a good mortgage rate?
Yes, 2.75% is an amazing mortgage rate. You're unlikely to get a 2.75% rate in today's market unless you take on an assumable mortgage from a seller who locked in this rate in 2020 or 2021, when rates were at all-time lows.
What is the lowest-ever mortgage rate?
According to Freddie Mac, the lowest-ever 30-year fixed mortgage rate was 2.65%. This was the national average in January 2021. It is extremely unlikely that rates will dip below 3% again anytime soon.
At what rate should you refinance your mortgage?
Some experts say it's worth refinancing when you can lock in a rate that's 2% less than your current mortgage rate. Others say 1% is the magic number. It all depends on your financial goals when refinancing, how long you plan to stay in the same house, and your break-even point after paying the refinance closing costs.
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