Mortgage Rates Dip for Fourth Week Straight, Hit Lowest Level in 3 Months

The averaged 30-year-fixed-mortgage rate stepped down for the fourth-straight week, dipping to 6.68% from 6.87% last week and marking its lowest point in the last three months, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Thursday.

This week’s numbers: 

  • The 30-year FRM averaged 6.86% as of June 27, 2024, down from last week when it averaged 6.87%. A year ago at this time, the 30-year FRM averaged 6.71%.
  • The 15-year FRM averaged 6.16%, up from last week when it averaged 6.13%. A year ago at this time, the 15-year FRM averaged 6.06%.

What the experts are saying: 

“The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months,” said Sam Khater, Freddie Mac’s chief economist. “By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market.” Economist, Jiayi Xu commented, “May’s improved inflation figures have provided some relief for mortgage rates, although the Fed seeks further evidence before considering a reduction in the Fed Funds rate. Another low inflation reading would indicate a trend, helping to maintain, or lower, current rates. Conversely, a higher-than-expected reading would drive rates up. In order to see mortgage rates move lower, better inflation readings are necessary. The next opportunity for such an indicator is the release of the core Personal Consumption Expenditure (PCE) Price Index on Friday, the Fed’s preferred inflation measure for monetary policy decisions.”

Xu added, “For home shoppers and sellers, peak mortgage rates are likely behind us, but the risk of volatility remains, complicating moving decisions…Nevertheless, as long as the economy continues to move toward the right direction, those committed to buying this year could find better conditions in the second half of the year.”

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