Mortgage Rates Dip Slightly to 6.67% as Hopes for Iran Peace Deal Fizzle Out

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 pu...