Mortgage rates were flat this week, with the average rate for a 30-year fixed rate mortgage at 6.58%, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.46%.
“The 30-year fixed-rate mortgage remained flat this week,” says Sam Khater, chief economist for Freddie Mac, in a release. “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.”
The average rate for a 15-year fixed-rate mortgage was 5.69%, down from 5.71% last week but up from 5.62% a year ago.
“While the week-over-week movement was minimal, rates have generally trended lower since peaking earlier this year — providing some much-needed consistency in a volatile market,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “The 30-year rate has now reached its lowest point since late spring, helping to restore a bit of confidence among buyers and homeowners.”
“Although inflation readings have been mixed, with recent Producer Price Index data hotter than expected, mortgage rates remain relatively stable,” Dedhia says. “This has sparked debate around the Fed’s next move, with speculation growing that they may hold off on rate cuts in September. Some still expect a 25 basis point cut, while others believe the central bank might wait for more data before making a move. Either way, stability in the rate environment is a positive for borrowers evaluating their next steps.”
“Over the summer, we’ve seen a steady improvement in purchase application volume, now trending ahead of the same period in 2024,” Dedhia adds. “But even as some buyers are jumping in, many are still watching from the sidelines, hoping rates drop further. For those who have been on the fence, this recent rate trend could translate into more buying power or a chance to refinance at a better rate. The key is staying informed and running the numbers, because even a small drop in rates can mean big savings over time.”
Photo: Susan Q Yin