Instant Reaction: Mortgage Rates, August 15, 2024

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Facts: The 30-year fixed mortgage rate from Freddie Mac remained essentially flat at 6.49% this week compared to 6.47% last week. At 6.49%, with 20% down, a monthly mortgage payment on a home with a price of $400,000 is $2,021. With 10% down, the typical payment would be $2,273.

Positive: Despite weekly volatility, mortgage rates remain at .5% below the average over the last year. Mortgage applications showed a 19-month high. CPI showed inflation has been tamed. The Federal Reserve will cut the Fed Funds rate. For home buyers looking for lower rates than that of the past year-they are lower.

Negative: Mortgage interest rates may still not be low enough for homeowners with golden handcuffs who have a mortgage under 4% to make a move-unless there is a compelling reason like a family or job change. While the Fed Funds rate cut is expected, mortgage interest rates should stay in the 6 percent range.

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