The current mortgage rates are at their lowest since early February, providing an excellent opportunity for home buyers and refinancers to lock in favorable rates. According to Freddie Mac, the average mortgage rate this week is 6.73%, which is lower than it was a year ago. This decrease in rates is a positive sign for those looking to purchase a home or refinance their existing mortgage.
The Federal Reserve’s recent suggestion of a possible rate cut in the fall has also influenced the mortgage market. While some prospective home buyers may be holding out for even lower rates, experts like Lisa Sturtevant caution against expecting a significant drop. Sturtevant explains that while the Fed rate cuts may impact mortgage rates, there is no direct correlation between the two. However, the anticipation of a rate cut has already started to bring mortgage rates down.
Looking ahead, Sturtevant predicts that mortgage rates will continue to decrease throughout the second half of the year, with an estimated average of around 6.4% for a 30-year fixed-rate mortgage by the end of the year. Despite the challenges of housing affordability, Sam Khater, Freddie Mac’s chief economist, notes that there has been a recent moderation in home price growth and an increase in housing inventory, which could benefit potential home buyers.
The National Association of REALTORS® has also reported a rise in contract signings, indicating more opportunities for home buyers in the market. This positive trend suggests that the housing market may be shifting in favor of buyers, offering them more options and potentially easing the affordability concerns that have been prevalent in recent years.
In terms of specific mortgage rates, Freddie Mac’s data for the week ending August 1 shows that 30-year fixed-rate mortgages averaged 6.73%, down from the previous week’s 6.78%. This rate is lower than the 6.90% average from a year ago. Additionally, 15-year fixed-rate mortgages averaged 5.99%, a decrease from the previous week’s 6.07% average and the 6.25% average from a year ago.
Overall, the current mortgage market presents an opportune time for home buyers and refinancers to secure favorable rates. With the potential for further rate cuts and a more balanced housing market, prospective buyers may find more options and improved affordability in the coming months.