Overview
- Mortgage borrowing costs remain in the mid-to-high 6% range with the 30-year fixed rate reported at about 6.63% in Bankrate’s Aug. 5 survey and 6.69% in Freddie Mac’s Aug. 6 weekly survey.
- Daily aggregator data showed slightly higher readings with Zillow reporting a 30-year purchase rate near 6.84% on Aug. 7, illustrating variation between weekly surveys and daily feeds.
- Markets and mortgage pricing have risen since late February as the U.S.–Iran conflict lifted oil prices, which pushed inflation expectations higher and pushed 10-year Treasury yields up.
- The Federal Reserve paused its policy-rate increases but signaled hikes remain possible, so jobs, July CPI and the late-August PCE reports will likely dictate whether rates fall or stay elevated.
- Higher rates combined with still-elevated home prices are reducing affordability, slowing buyer demand and keeping many homeowners locked into low older loans, which tightens supply and could further cool sales.