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Mortgage Interest Rates Today, July 6, 2024 | Rates Ticked Up Closer to 7% This Week
As of early July 2024, mortgage interest rates have seen a slight uptick, bringing the average rates closer to the 7% mark. Here’s a detailed look at the current landscape:
- 30-Year Fixed-Rate Mortgages:
- The average rate for a 30-year fixed mortgage stands at approximately 7.66%, according to Money’s daily rate survey. This represents a slight decrease of 0.093 percentage points from the previous week (Money). Meanwhile, Freddie Mac reports a slightly lower average rate of 6.95%, reflecting an increase of 0.09 percentage points from the previous week (Money).
- 15-Year Fixed-Rate Mortgages:
- For 15-year fixed mortgages, the average rate has increased to 6.25%, up by 0.09 percentage points from the previous week, as noted by Freddie Mac. This is consistent with the general trend of rising rates (Money).
- 5/6 Adjustable-Rate Mortgages (ARMs):
- The rates for 5/6 ARMs have also experienced growth, with Money’s survey indicating an average rate of 7.97% (Money).
- Jumbo Loans:
- Jumbo loan rates have slightly risen as well, with the current average rate for a 30-year fixed jumbo mortgage at 7.39%, up from 7.37% last week (Nasdaq).
- Refinancing Rates:
- Those looking to refinance their mortgages are seeing average rates around 8.17% for a 30-year fixed-rate refinance loan, marking a slight decline of 0.074 percentage points from the previous week (Money).
Factors Influencing Rates
Several factors are contributing to the current mortgage rate trends:
- Federal Reserve Policies: The Federal Reserve’s decision to potentially only cut the Fed Funds Rate once this year, and not until late in the year, has created an environment where mortgage rates are likely to remain within a narrow band of 7.0-7.5% throughout the remainder of 2024 (The Mortgage Reports).
- Economic Conditions: Inflation cooling off and economic slowdown signs suggest that mortgage rates may gradually decline as the year progresses. However, any unexpected global events could introduce volatility into the rates (The Mortgage Reports) (Nasdaq).
Predictions and Future Outlook
Experts predict that mortgage rates will hover around the current levels, with potential slight decreases if economic conditions improve. The Mortgage Bankers Association and National Association of Realtors project the average 30-year fixed interest rate to be around 6.7% in the third quarter of 2024, while Fannie Mae predicts it will be slightly higher at 7.1% (The Mortgage Reports).
Shopping for Mortgages
Given the volatile nature of mortgage rates, it is crucial for prospective homebuyers and those looking to refinance to shop around and compare offers from multiple lenders. Utilizing tools like mortgage calculators can help estimate monthly payments and overall costs based on different rate scenarios (LendingTree) (Nasdaq).
In summary, while mortgage rates are currently nearing 7%, they are still below historical averages and may see a downward trend later in the year depending on economic developments and Federal Reserve actions. For the best rates, potential borrowers should actively compare offers and consider their financial situations and goals when choosing mortgage products.