Mortgage rates continued to decrease in August, landing at an average rate of 6.50%. According to Freddie Mac, the average monthly rate fell by 35 basis points (bps) from July’s rate of 6.85%. The August rate is down 57 bps from one year ago, which stood at 7.07%. The 15-year fixed-rate mortgage also saw a decrease, dropping by 45 bps from July to 5.68%, and is now lower compared to last August by 75 bps. Additionally, the 10-year Treasury rate declined 30 bps from 4.28% in July to 3.98%. Per the NAHB forecast, we expect 30-year mortgage rates to decline slightly to around 6.66% at the end of 2024 and eventually to decline to just under 6% by the end of 2025. The NAHB outlook anticipates the federal funds rate to be cut by 25 bps no later than the December Federal Reserve meeting, although it is possible for the Fed to cut rates in the upcoming FOMC meeting in September. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Mortgage rates continued to decrease in July, landing at an average rate of 6.85%. According to Freddie Mac, the average monthly rate fell by 7 basis points (bps) from June’s rate of 6.92%. This current rate is nearly identical to the rate from one year ago, which stood at 6.84%. The 15-year fixed-rate mortgage also saw a decrease, dropping by 5 bps from June to 6.14%, and is now lower compared to last July by 4 bps. Additionally, the 10-year Treasury rate declined 9 bps from 4.37% in June to 4.28%. Per the NAHB forecast, we expect 30-year mortgage rates to decline slightly to around 6.66% at the end of 2024 and eventually to decline to just under 6% by the end of 2025. The NAHB outlook anticipates the federal funds rate to be cut by 25 bps no later than the December Federal Reserve meeting and six more rate cuts in 2025 as inflation approaches the Fed’s policy target. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

According to Freddie Mac, the average 30-year fixed-rate mortgage decreased by 14 basis points (bps) from 7.06% in the previous month to 6.92% in June 2024. This decline comes after increases from 6.64% in January to a peak above 7.2% in May. Nonetheless, the current rate is still higher from one year ago by 21 bps, sidelining potential home buyers who are waiting for mortgage rates to decrease. Similarly, the 15-year fixed-rate mortgage also decreased by 16 bps from last month to 6.19% but remains 10 bps higher compared to last year. Mortgage rates declined as inflation data moderated and the 10-year Treasury rate fell back 15 bps from 4.52% in May to 4.37% in June. Per the NAHB forecast, we expect 30-year mortgage rates to decline slightly to around 6.66% at the end of 2024 and eventually to decline to just under 6% by the end of 2025. The NAHB outlook anticipates the federal funds rate to be cut by 25 bps at the December Federal Reserve meeting and six more rate cuts in 2025 as inflation approaches the Fed’s target. Discover more from Eye On Housing Subscribe to get the latest posts to your email.