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Mortgage rates this week
Fixed mortgage rates went up sharply in the week ending July 3, with rates for 30-year fixed loans moving back above 7%.
The 30-year fixed-rate mortgage averaged 7.01% APR, up 20 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 6.26% APR, up 15 basis points from the previous week's average.
The 5-year adjustable-rate mortgage averaged 7.74% APR, unchanged from the previous week's average.
Looking at the economic data that came out this week, one would have expected mortgage rates would go down. Flattening consumer prices, slowing construction spending and a normalizing labor market shouldn't be propping up rates. But with anxiety riding high after last Thursday's presidential debate, uncertainty about the near future could keep rates high.
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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.
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