Latest Mortgage Rates and Trends: July 2024 Update
Are you in the market for a new home or looking to refinance your current mortgage? If so, you’ll want to stay informed about the latest mortgage rates and trends. Mortgage rates have started July a bit higher than they were last month, with 30-year mortgage rates averaging around 6.71% this week, according to Zillow data. But recent economic data suggests that rates should trend back down soon.
On Friday, the Bureau of Labor Statistics reported that the U.S. economy added 206,000 jobs in June. This is slightly above expectations but still a slowdown from the previous month. The unemployment rate also ticked up from May’s 4.0% reading to 4.1%. This slowing in the labor market has generally been seen as good news for mortgage rates this year because it increases the likelihood that the Federal Reserve will soon start cutting the federal funds rate.
In written commentary on this latest jobs report, Realtor.com chief economist Danielle Hale said that mortgage rates are likely to stay in their current range in the near term. But once we get closer to a potential Fed cut, rates should ease. “Job gains were modest enough to prevent a big surge in interest rates, but strong enough to stave off worries that a hard landing could be ahead,” Hale wrote. “Meanwhile, the modest uptick in unemployment could help interest rates drift toward the lower end of the range until next week’s inflation reports.”
If you’re curious about the current mortgage rates, Zillow provides a comprehensive list of rates for different mortgage types. You can also use their mortgage calculator to see how today’s rates will affect your monthly and long-term payments. By adjusting the term length and interest rates, you can get a better idea of how your payments may change.
Looking ahead, mortgage rates are expected to trend down in the coming months and years. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well. In the meantime, if you’re looking to leverage your home’s value for a big purchase, a home equity line of credit (HELOC) may be a good option. HELOC rates are relatively low compared to other loan options, making it a favorable choice for many homeowners.
Overall, staying informed about mortgage rates and understanding how they are influenced by economic factors can help you make informed decisions when it comes to buying or refinancing a home. Keep an eye on the latest trends and be prepared to take advantage of favorable rates when they arise.
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.