Mortgage Interest Rates Low After Dropping JULY 2024

According to an article by Business Insider -  Mortgage rates dropped last week and remain low today. Rates should fall further throughout the remainder of 2024 as long as inflation continues to slow and the Federal Reserve starts lowering the federal funds rate. 

So far this month, 30-year mortgage rates have averaged around 6.59%, but they've been trending lower in recent days, according to Zillow data.

In June, the Consumer Price Index rose 3.0% year over year, a downtick from May's 3.3% reading. Inflation has been decelerating for several months now, raising the likelihood that the Fed will start cutting rates soon. According to the CME FedWatch Tool, we may get as many as three rate cuts by the end of 2024. This should remove a lot of upward pressure off of mortgage rates and allow them to trend down.

But it may be a while before we see mortgage affordability improve significantly. If you're shopping for a home right now, getting quotes from multiple mortgage lenders can help ensure you get the best rate available, boosting affordability even in this high-rate environment.

Last week's average 30-year fixed mortgage rate was 6.89%, according to Freddie Mac. This is a six-basis-point decrease from the previous week.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you'll have a higher rate than you would with shorter terms or adjustable rates. 

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term. to see the 15 year rate and read full article click HERE

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