US mortgage rates edge higher as fixed loans climb and ARMs dip
National averages shift as borrowing costs fluctuate, while refinance applications surge year-on-year following earlier rate declines.
Average US mortgage and refinance rates moved higher on Wednesday, 12 August 2026, according to data from the Zillow lender marketplace. The latest figures indicate a broadening of borrowing costs across the primary fixed-rate products, with the 30-year fixed mortgage rate rising 6 basis points to 6.65%.
The 15-year fixed loan also saw an increase, climbing 3 basis points to 6.00% compared to the previous day. In contrast, the 5/1 adjustable-rate mortgage (ARM) experienced a slight decline, dropping 1 basis point to 6.51%. These figures represent national averages rounded to the nearest hundredth.
Mortgage rates have fallen by more than half a point since the end of May 2026. This downward trend has contributed to a significant shift in borrower behaviour, with refinance applications increasing by more than 62% year-on-year. Despite the recent uptick on Wednesday, the broader context shows rates remaining lower than they were earlier in the year.
Refinance rates are typically higher than purchase mortgage rates, although this dynamic does not always hold. Borrowers looking to refinance are often advised to improve their credit scores and lower their debt-to-income ratios to secure more favourable terms. Moving to a shorter loan term can also result in lower interest rates, though it generally increases monthly payment obligations.
The landscape of mortgage products continues to offer distinct trade-offs. Fixed-rate mortgages provide predictable monthly payments but usually carry higher interest rates and total interest costs over the life of the loan compared to shorter-term fixed loans. Adjustable-rate mortgages offer lower introductory rates but expose borrowers to the risk of future rate increases after the initial fixed period.
Regional variations remain a factor, with rates in high cost-of-living cities potentially differing from national averages. While the national average 30-year fixed rate stands at 6.65%, individual rates vary by state and local market conditions.
