Mortgage payments dipped as loan amounts fell

Plus: Mortgage rates rise slightly to 6.66%, Freddie Mac says

August 28, 2026

👋 Good morning. September nears. Today's newsletter is a quick 2.5-minute read.

Disclaimer: Average mortgage rates as of August 27, 2026. © MND Daily Rate Index.

1. Mortgage payments dipped as loan amounts fell

The median monthly payment for purchase applicants fell to $2,175 in July, down $16 from June, as lower loan amounts offset a modest rise in rates. MBA's affordability index improved 1.3% to 155.8, and on an annual basis payments are still up 2.2% — but wage growth outpaced that increase, helping affordability on both measures.

FHA payments moved the other way, rising to $1,901 from $1,872 in June. Conventional payments fell to $2,184. New construction payments ticked up slightly to $2,210.

Idaho, Nevada, and Rhode Island remain the least affordable states by payment-to-income ratio. Louisiana and D.C. are the most affordable. Rates have moved higher since the July data was collected, which could reverse some of this month's improvement.

2. Freddie Mac: Mortgage rates rise slightly to 6.66%

Mortgage rates rose for the first time in three weeks, further squeezing affordability as the housing market weakens.

The average for a 30-year, fixed loan increased slightly to 6.66% from 6.65% a week earlier, Freddie Mac said in a statement yesterday. The rate was 6.56% a year ago.

The 15-year FRM averaged 5.98%, up from last week when it averaged 5.95%. A year ago at this time, the 15-year FRM averaged 5.69%.

"Mortgage rates changed little this week averaging 6.66%," said Sam Khater, Freddie Mac's Chief Economist. "The economy remains resilient, demonstrated by steady consumer spending and rising household incomes. More homes coming on the market and slower price growth in many areas are giving buyers better options and helping create a more balanced housing market."

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3. More Nuggets

⏹️ Federal judge blocks HUD overhaul of funding for fair housing groups. (Reuters)

📈 All eyes and ears on Federal Reserve chief Warsh in Wyoming. (The Hill)

🎟️ Residents land new homes through Elk Grove Village housing raffle. (NBC)

🕊️ REMAX co-founder Gail Liniger has died at the age of 81. (BizJournals)

🏘️ AI’s two-minute home refinancings menace mortgage bond returns. (Bloomberg)

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4. Consumer confidence hits seven-month low

Consumer confidence fell in August to 89.4, its lowest level since January, as households grew more concerned about the labor market and inflation. The Conference Board’s index slipped from a downwardly revised 90.2 in July.

The decline was driven by a 7.8% drop in the expectations index, more than offsetting the first improvement in views of current conditions in four months. Consumers’ expectations for inflation over the next year also rose to 5.8% from 5.6% in July.

The jobs differential — the gap between consumers who say jobs are plentiful and those who say jobs are hard to find — improved for the first time in three months, after hitting its lowest level in more than five years in July.

5. Better is using its Coinbase partnership as a mortgage lead channel

Better and Coinbase moved their crypto-backed mortgage to general availability. Coinbase One members now get a 1% lender credit — up to $10,000 — on any Better product: standard mortgages, HELOCs, and refis. That expands the arrangement from a niche crypto product into a customer acquisition channel for Better's full lineup.

How the product works: borrowers pledge Bitcoin as collateral for a separate down payment loan instead of using cash. The crypto secures the second loan, not the first mortgage. Borrowers must pledge at least 2.5x the down payment amount in Bitcoin and cannot access those funds until the loan is repaid.

The companies cited $260 million in projected volume from a June waitlist — borrower-reported intent, not funded loans. Better reported $1.67 billion in Q2 funded volume with partner-generated loans at 55% of production, alongside a $30.6 million net loss.

☀️ You’re all caught up. See you on Monday!

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