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Mortgage rates this week
Mortgage rates for fixed-rate loans fell for the second week in a row to their lowest levels since March.
The 30-year fixed-rate mortgage averaged 6.67% APR, down 10 basis points from the previous week's average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point. This is the lowest average rate for the 30-year since the week ending March 14.
The 15-year fixed-rate mortgage averaged 5.89% APR, down 22 basis points from the previous week's average. This is the lowest average rate for the 15-year since the week ending Feb. 8.
The 5-year adjustable-rate mortgage averaged 7.66% APR, up one basis point from the previous week's average.
With inflation seemingly waning, and with two Federal Reserve rate cuts possible this year, it appears that mortgage rates peaked in spring and are trending downward.
July mortgage rate forecast
It appears that mortgage rates peaked for the year in May. We won't know for sure until the end of December, but the trend has been downward.
Mortgage rates tend to drop when the inflation rate falls. If inflation continues to diminish in July, mortgage rates might keep trending slightly lower.
Home prices rise and fall seasonally, and they're usually highest in June. If mortgage rates go down this autumn as expected, the combination of lower home prices and interest rates could make homes a bit more affordable.
What other forecasters predict
Fannie Mae and the Mortgage Bankers Association revised their mortgage rate forecasts upward in May as inflation has proved tenacious. Fannie Mae's prediction is less optimistic than the MBA's.
