Mortgage Rates Dip as Fed Determines Next Steps


The average rate for a 30-year fixed rate mortgage fell for the first time in four weeks, dipping to 7.18%, down from 7.23% last week, according to Freddie Mac’s Primary Mortgage Market Survey.

“Mortgage rates leveled off this week but remain elevated,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Despite continued high rates, low inventory is keeping house prices steady.”

“Recent volatility makes it difficult to forecast where rates will go next, but we should have a better gauge in September as the Federal Reserve determines their next steps regarding interest rate hikes,” Khater adds.

A year ago at this time, the average rate for a 30-year was 5.66%.

For the week ended August 31, the average rate for a 15-year fixed-rate mortgage was 6.55%, unchanged from last week.

A year ago at this time, the average rate for a 15-year was 4.98%.

Yesterday the Mortgage Bankers Association reported that mortgage application volume increased 2.3% during the week ended August 25 despite the 30-year hovering at an average of 7.31%.

Photo: David Kristianto

Notify of
Inline Feedbacks
View all comments