Mortgage Rates Drop Further on July 31, 2026
On Friday, July 31, 2026, mortgage rates continued to decline following the Federal Reserve's decision to keep interest rates unchanged. According to Zillow data, the average 30-year fixed-rate mortgage dropped by 10 basis points to 6.55%, while other loan types also saw reductions in their respective rates. Refinance rates were similarly affected but remained higher than purchase rates across most categories. The 30-year refinance rate stood at 6.76%. These changes reflect ongoing market expectations of a potential easing cycle, which could influence borrower behavior and housing demand as lower rates make home purchases or refinancing more attractive. The decline in mortgage rates may encourage increased activity in the real estate sector by reducing borrowing costs for consumers.
Topics: Fed policy interest rates mortgage rates