Mortgage Rates Update: Key Takeaways and Statistics

Mortgage rates have been on a steady decline over the past week, with average 30-year fixed mortgage rates falling to 6.62%, down nine basis points from last week's rate. Despite this drop, rates remain in the upper 6% range, causing some concern among potential homebuyers. However, experts predict that rates will continue to trend down as inflation slows and the Federal Reserve starts lowering the federal funds rate. This should improve affordability for hopeful homebuyers. In the meantime, mortgage refinancers can benefit from the current rates by refinancing into a shorter term or a lower rate.

Key Takeaways:

• The current average 30-year fixed mortgage rate is 6.62%, down nine basis points from last week's rate.
• 30-year fixed mortgage rates are in the upper 6% range, but experts predict they will continue to trend down as inflation slows.
• Mortgage refinancers can benefit from the current rates by refinancing into a shorter term or a lower rate.
• 30-year refinance rates increased slightly to 7.86%, 16 basis points up from last week's rate.
• 15-year fixed refinance rates rose to 6.41%, while 5/1 ARM refinance rates fell to 6.38%.
• 30-year VA refinance rates increased to 6.25%, up 18 basis points from last week's rate.

Statistics:

• The current average 30-year fixed mortgage rate is 6.62% (Zillow data).
• 30-year fixed mortgage rates are in the upper 6% range, causing concern among potential homebuyers.
• The Federal Reserve is expected to start lowering the federal funds rate in September, which should remove some upward pressure off of mortgage rates.
• Investors currently believe that the Fed will start cutting its benchmark rate in September, according to the CME FedWatch Tool.

Sources:

• Zillow data
• Investing.com
• Business Insider
• CME FedWatch Tool