Mortgage rates fell slightly this week, as the average rate for a 30-year decreased to 6.72%, down from 6.74% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.73%.
The 30-year has basically remained in a narrow range between 6.6% and 6.9% for over a year now.
“The 30-year fixed-rate mortgage showed little movement, remaining within the same narrow range for the fourth consecutive week,” says Sam Khater, chief economist, for Freddie Mac, in a statement. “Continued economic growth, along with moderating house prices and rising inventory, bodes well for buyers and sellers alike.”
The average rate for a 15-year fixed mortgage, as of July 31, was 5.85%, down from last week when it averaged 5.87% and down from 5.99% a year ago at this time.
Samir Dedhia, CEO of One Real Mortgage, says while the movement in rates is small, “it continues a multi-week trend of overall stability — a welcome contrast to the rate volatility we saw earlier this year.”
“After hitting highs above 7 percent in January, rates have gradually come down, giving buyers and homeowners more room to plan with confidence,” Dedhia says in a statement. “This steady stretch is supported by a relatively calm economic outlook and the Federal Reserve’s decision to once again hold its benchmark rate steady. With inflation showing signs of moderating and markets pricing in one or two potential Fed rate cuts before the end of the year, mortgage rates are finding a more predictable rhythm. That predictability is bringing more consumers back into the market — not just to buy homes, but also to explore refinancing opportunities as affordability improves.”
“What’s particularly encouraging is how broader housing dynamics are shifting,” Dedhia adds. “Economic growth remains on track, home price appreciation is starting to level off, and inventory is gradually increasing. For buyers, that means more choices and stronger negotiating power. For sellers, it means a growing pool of motivated purchasers. With rates still below 7 percent and momentum building, this is a great time to evaluate your options and be prepared for the next move.”
Yesterday, the Federal Open Market Committee voted 9-2 to keep the fed funds rate at 4.25% to 4.5% – however, two committee members broke ranks and voted against the measure, strengthening the possibility of a rate cut later this year.
Michelle W. Bowman and Christopher J. Waller expressed their preference to lower the target range for the federal funds rate by 0.25 percentage point. This could be an indication of weakening support for Fed Chair Jerome Powell, who has been under extreme pressure by President Trump to cut rates.
Photo: Alison Pang