Sign in Subscribe
Interest rates

Mortgage Rates Inch Down, Reaching Lowest Level in Almost Three Months

Strategic Insights

— 2 min read

Mortgage rates inched down again this week, reaching their lowest level in almost three months. According to Freddie Mac, average 30-year mortgage rates were 6.86% this week, a single basis point decrease from the week before. The decline in rates is expected to bring additional homebuyers back into the market, but rates are still relatively high overall, keeping many would-be homebuyers out of the market. Experts predict rates to trend down throughout the remainder of 2024 and beyond, but borrowers can lessen the impact of today's high rates by getting quotes from multiple mortgage lenders.

Key Takeaways:

  • Average 30-year mortgage rates were 6.86% this week, a 0.01% decrease from the week before.
  • The 30-year fixed-rate mortgage has continued to trend down, hitting the lowest level in almost three months.
  • According to Freddie Mac's chief economist, Sam Khater, the economy is in good shape, and rates are expected to continue to come down over the summer months.
  • Mortgage rates are still relatively high overall, keeping many would-be homebuyers out of the market.
  • Experts predict rates to trend down throughout the remainder of 2024 and beyond.
  • Borrowers can lessen the impact of today's high rates by getting quotes from multiple mortgage lenders.
  • Fannie Mae researchers expect home prices to increase 4.8% in 2024 and 1.5% in 2025.
  • The Mortgage Bankers Association expects a 4.5% increase in 2024 and a 3.3% increase in 2025.
  • The current supply of homes is historically low, which will likely push prices up.
  • A mortgage calculator can help determine how much house you can afford and how much your monthly payment could be.
  • Experts recommend spending no more than 28% of your gross monthly income on housing expenses.
  • Borrowers should shop around and get preapproved with multiple mortgage lenders to see who can offer the best rate.

Statistics:

  • Average 30-year mortgage rates were 6.86% this week, a 0.01% decrease from the week before.
  • The economy is in good shape, with the Consumer Price Index rising by 3.3% in the last 12 months.
  • Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023.
  • Inflation has been coming down, with many forecasts expecting rates to fall this year.
  • Home prices are expected to increase 4.8% in 2024 and 1.5% in 2025, according to Fannie Mae researchers.
  • The Mortgage Bankers Association expects a 4.5% increase in 2024 and a 3.3% increase in 2025.
  • The current supply of homes is historically low, which will likely push prices up.

Sources:

  • (https://www.businessinsider.com/personal-finance/30-year-mortgage-rates)
  • (https://www.freddiemac.gcs-web.com/news-releases/news-release-details/30-year-fixed-rate-mortgage-continues-its-downward-trend)
  • (https://www.businessinsider.com/personal-finance/how-we-evaluate-mortgage-lenders)
  • (https://www.businessinsider.com/personal-finance/best-mortgage-lenders)
  • (https://www.businessinsider.com/cpi-inflation-may-prices-rent-gas-fed-interest-rates-2024-6)
  • (https://www.freddiemac.com/research/insight/20210507-housing-supply)
  • (https://www.fanniemae.com/media/51616/display)

Read more