Instant Reaction: Mortgage Rates, July 25, 2024

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Facts: The 30-year fixed mortgage rate from Freddie Mac was nearly unchanged at 6.78% this week vs 6.77% last week. At 6.78%, with 20% down, a monthly mortgage payment on the median priced existing home of $426,900 is $2,222; with 10% down, it is $2,500.

Positive: Also out today: GDP was stronger than expected. However, the PCE price index, which the Fed is watching, increased 2.6% for Q2, down from 3.4% in Q1. Under more Fed scrutiny, Core PCE rose 2.9%, down from 3.7%. Monthly PCE is out tomorrow.

Negative: There is a divide among consumers who are spending, and those still feeling the strain of inflation. When the FOMC meets next week, this will probably still not be enough to lower the Fed Funds Rate and they will likely hold until September.

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