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Mortgage rates dip again, but delinquencies rise in FHA and VA loans
30-year conforming rates averaged 6.86% and mortgage applications rose 3.6% for the week ending Aug. 7, while FHA serious delinquencies hit 2.06% in Q2 2026.
Mortgage rates fell for a second straight week, with 30-year conforming loans averaging 6.86% on Tuesday, down 5 basis points from a week earlier, according to HousingWire’s Mortgage Rates Center. MBA data also showed mortgage applications rose 3.6% for the week ending Aug. 7, with the purchase index up 3% and the refinance index up 5%.
HousingWire reports the decline provided some relief for prospective borrowers, but rates remain near their highest level in a year and affordability continues to limit refinance activity. For 30-year jumbo loans, rates fell 12 basis points to an average of 6.80%, while 30-year FHA loans were down 6 basis points to an average of 6.59%.
The Mortgage Bankers Association said the typical purchase applicant was paying a median $2,191 per month in June, slightly lower than May, and that household earnings growth of 4.6% over the past year pushed payments down 3.5% as a share of income. Still, HousingWire notes rising stress in government-backed servicing portfolios, including a 2.06% FHA serious delinquency rate in Q2 2026.
MBA data for Q2 2026 indicated delinquencies were down versus the prior quarter but up year over year across major loan types. The report cited a 122-basis-point jump in FHA late-payment rates and pointed to additional increases in VA-related measures, underscoring improving demand amid ongoing borrower strain.