30-Year Mortgage Rates Fall to 6.86% as FHA Delinquencies Jump 122 Bps
Updated
Updated · HousingWire · Aug 18
30-Year Mortgage Rates Fall to 6.86% as FHA Delinquencies Jump 122 Bps
3 articles · Updated · HousingWire · Aug 18
Summary
30-year conforming mortgage rates averaged 6.86% Tuesday, down 5 basis points week over week for a second straight decline; jumbo rates fell to 6.80% and FHA loans to 6.59%.
Mortgage demand rose with the pullback: MBA said total applications increased 3.6% in the week ended Aug. 7, with purchase applications up 3% and refinances up 5%.
Borrower strain still showed in servicing data, especially for government-backed loans. In Q2 2026, FHA late-payment rates were up 122 basis points from a year earlier and VA delinquencies rose 57 basis points.
FHA serious delinquencies reached 2.06% in Q2, up 49 basis points year over year, with servicers partly tying the increase to trial payment plans under FHA's new loss-mitigation waterfall.
Housing activity remains mixed despite lower rates: inventory rose 1.28% and new listings 2.2% from a year ago, while pending sales and mortgage demand still lagged year-earlier levels.