Mortgage Interest Rates Forecast

Mortgage rates this week

Fixed mortgage rates rose for the fifth week in a row in the week ending Oct. 24 in the wake of a strong jobs report for September.

• The 30-year fixed-rate mortgage averaged 6.6% APR, up 14 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.

• The 15-year fixed-rate mortgage averaged 5.78% APR, up 11 basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.54% APR, up two basis points from the previous week's average.

Mortgage rates jumped higher a few weeks ago, after the September employment report showed that job creation was stronger than expected, and have kept climbing. Even so, forecasters predict that mortgage rates will fall over the next few months, and the Federal Reserve is expected to cut short-term interest rates at its next meeting, a couple of days after the election.

October mortgage rate forecast

Mortgage interest rates fell for the last five months, but October breaks the streak. Mortgage rates went down in previous months in anticipation of action from the Federal Reserve.

On Sept. 18, the Federal Reserve announced a 50-basis-point rate cut. Now, mortgage rates may idle around 6% until markets and the Fed catch up.

Forecasts from Fannie Mae and the Mortgage Bankers Association see mortgage interest rates moving lower, but it's not a dramatic drop. It's barely a slope. In a somewhat unusual twist, Fannie Mae and the MBA's forecasts for the near future aren't just similar, they are nearly identical.

» MORE: Is it a good time to buy a house? Here's what to consider.