Tuesday, July 23, 2024

30-year mortgage rates increase slightly to just below 7% for the first time since late May

Average Rate on 30-Year Mortgage Rises for First Time Since Late May

Are you in the market for a new home or thinking about refinancing your current mortgage? Well, you might want to pay attention to the latest news on mortgage rates. According to a recent report, the average rate on a 30-year mortgage rose this week, marking the first increase in borrowing costs since late May.

The rate climbed to 6.95% from 6.86% last week, as reported by mortgage buyer Freddie Mac. While this may not seem like a significant jump, even a small increase in mortgage rates can add hundreds of dollars to your monthly payments. This uptick comes after a four-week period of relatively stable rates, which have been hovering around 7% for most of the year.

So, what does this mean for potential homebuyers and homeowners looking to refinance? Well, higher mortgage rates can put a damper on the housing market, making it more expensive to buy a home or refinance your existing loan. The elevated rates have been a major factor contributing to the ongoing slump in home sales, which have been on the decline since 2022.

In addition to the increase in 30-year mortgage rates, borrowing costs on 15-year fixed-rate mortgages also rose this week, with the average rate climbing to 6.25% from 6.16% last week. While these rates are influenced by various factors, including the Federal Reserve’s interest rate policy and movements in the bond market, the recent increase is a clear indication that borrowing costs are on the rise.

However, there may be some hope on the horizon for potential homebuyers. The Federal Reserve has hinted at a possible rate cut later this year, which could lead to a decrease in long-term mortgage rates. While most economists predict that the first rate cut won’t happen until September, there is a possibility that mortgage rates could start to ease in the coming weeks if bond yields continue to decline in anticipation of a Fed rate cut.

Despite the recent increase in mortgage rates, there is still optimism in the housing market. Economists believe that rates will gradually decrease in the second half of the year, which could help to stabilize home prices and make homeownership more affordable for buyers. So, if you’re in the market for a new home or thinking about refinancing, it might be worth keeping an eye on mortgage rates in the coming months.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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