# Mortgage Rates Drop Today Cooling inflation positively impacts mortgage rates - **Source:** [NerdWallet](https://brifing.si/source/47fee75b-2b5e-493d-9ac3-f012b6c37891) - **Published:** 2026-08-14 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/4c09a0c2-7df4-4e83-9449-5cda679eeb99 ## Current Mortgage Rate Situation Mortgage interest rates have remained relatively stable recently. Annual inflation cooled to 3.4% in July, slightly below June's 3.5% rate. This modest improvement aligned with market expectations, positively influencing mortgage rates. Next week, the Federal Reserve's July meeting minutes will provide important clues for the market about future rate decisions. ## Inflation and Mortgage Connection Mortgage rates directly respond to inflation data. Although the Federal Reserve kept rates steady in July, three members voted for a quarter-point increase. The minutes are expected to clarify the central bank's inflation concerns and potential support for a September rate hike. Inflation remains above the Fed's 2% target. ## Federal Reserve's Influence The Federal Reserve doesn't directly set mortgage rates, but changes in the federal funds rate impact the entire economy. This overnight bank borrowing rate has an indirect but powerful effect on mortgage rates. Lenders begin pricing in potential Fed moves into their rates even before official announcements. ## Role of Unemployment Data Weekly jobless claims to be released on Thursday will provide fresh labor market insights. Rising layoffs could complicate a potential September rate hike, while strong labor market performance could give the Fed more leverage to focus on inflation. Both scenarios could influence mortgage rates. ## Refinancing Opportunity If your current mortgage rate is around 7.03% or higher, refinancing might be worth considering. Typically, rates at least 0.5-0.75 percentage points lower than your current rate offer savings. If you plan to stay in your home long enough to recoup closing costs, refinancing could lower monthly payments or shorten your loan term. ## Timing for Home Purchase There's no 'perfect time' to buy a home. What matters is whether you can comfortably afford mortgage payments at today's rates. If the answer is yes, focus on getting preapproved and comparing lender offers rather than waiting for lower rates. If buying isn't feasible now, reducing debts and building down payment savings can strengthen your buyer profile. ## Rate Lock Strategy If you've received a satisfactory mortgage quote, consider locking your rate. Look for lenders offering 'float-down' options that let you benefit from better rates if the market drops during your lock period. Rate locks protect against increases during loan processing, providing peace of mind in volatile markets. ## Mortgage Market Outlook Mortgage rates can change daily or even hourly. Before the Federal Reserve's September meeting, inflation and labor market data will be key rate determinants. Investors reassessing Fed policy expectations could trigger new mortgage rate movements, making market monitoring crucial for buyers and those considering refinancing. ## Sources covering this story - https://www.nerdwallet.com/mortgages/news/mortgage-rates-today-friday-august-14-2026 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._