Mortgage Interest Rates Forecast

Mortgage rates this week

Mortgage rates for fixed rate loans moved somewhat higher the week ending Oct. 17, but this was minimal compared to the jump we saw last week.

• The 30-year fixed-rate mortgage averaged 6.46% APR, up six 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 5.67% APR, up 12 basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.52% APR, down three basis points from the previous week's average.

Mortgage interest rates have had plenty of daily ups and downs lately, with an initial spike following the September jobs report (released Oct. 4) pushing the average 30-year fixed rate closer to 6.5% territory. But rates will hopefully settle down — or even move lower — as we have a couple of quiet weeks in terms of incoming economic data. The next big needle-movers don't arrive until the last week of October, when we'll get new info on the job market and inflation. In addition to having an immediate influence on rates, those reports could clarify the Federal Reserve's course of action at their meeting the first week of November.

October mortgage rate forecast

Mortgage interest rates have fallen for the last five months, but October could break the streak. Mortgage rates went down 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.