Mortgage rates have leveled out, remaining this week at the lowest percentage seen since October, according to the latest Primary Mortgage Market Survey® from Freddie Mac.
“Over the summer, rates have come down and purchase applications are outpacing 2024, though a number of homebuyers continue waiting on the sideline for rates to further decrease,” said Sam Khater, Freddie Mac’s chief economist.
Realtor.com Senior Economist Jake Krimmel added that “mortgage rates hovering near 10-month lows could offer a much-needed boost to buyer sentiment and to affordability.”
“It’s been a particularly cruel summer for buyers, sellers, and builders alike, as existing and new homes sales remain slow, despite recent pickups,” he continued. “Luckily, a combination of lower rates and easing economic uncertainty could be enough to jumpstart the fall market by boosting buyers’ purchasing power and giving them the confidence to get off the sidelines.”
This week’s numbers:
- The 30-year FRM averaged 6.58%, unchanged from last week. A year ago at this time, the 30-year FRM averaged 6.46%.
- The 15-year FRM averaged 5.69%, down slightly from last week when it averaged 5.71%. A year ago at this time, the 15-year FRM averaged 5.62%
Krimmel commented that the 31 basis point fall of rates in the last three months may lead toward “a likely Federal Reserve rate cut at their mid-September FOMC meeting.”
“Recent macroeconomic data have not made the Fed’s decision entirely straightforward: a weak jobs report points toward easing, while a rise in core inflation gives reason for pause in the months ahead,” he continued. “Markets will look to Fed Chair Jerome Powell’s final Jackson Hole speech this Friday for clarity.”
