With the exception of one increase over the Fourth of July, the average mortgage rate has either dipped or remained flat for the last 10 weeks, continuing the trend this week with little movement and remaining at its lowest level in over a year.
This week’s Primary Mortgage Market Survey® (PMMS®) from government-sponsored enterprise (GSE) Freddie Mac, shows the 30-year fixed-rate mortgage (FRM) averaged 6.49%, just slightly up from last week’s average of 6.47%.
This week’s data:
- The 30-year FRM averaged 6.49% as of August 15, 2024, up from last week when it averaged 6.47%. A year ago at this time, the 30-year FRM averaged 7.09%.
- The 15-year FRM averaged 5.66%, up from last week when it averaged 5.63%. A year ago at this time, the 15-year FRM averaged 6.46%.
What the experts are saying:
“While rates increased slightly this week, they remain more than half a percent lower than the same time last year,” said Sam Khater, Freddie Mac’s chief economist. “In 2023, the 30-year fixed-rate mortgage nearly hit 8 percent, slamming the brakes on the housing market. Now, the 30-year fixed-rate hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.”
Realtor.com Senior Economic Research Analyst Hannah Jones commented, “The July inflation data came in near expectations, boosting investor confidence that a rate cut will be on the table for the September FOMC meeting. Despite overall inflation trending in a positive direction, shelter inflation remains disappointingly high. Homebuyers and renters continued to face elevated housing costs in July as rents, home prices, and mortgage rates remained elevated. However, inventory levels have trended higher on an annual basis over the last 9 months, suggesting that housing conditions are set to improve, especially on the heels of the recent downward mortgage rate trend.”
