As of July 11, 2024, the average 30-year mortgage rate is 6.89%, down from 6.95% the previous week. The 15-year rate has also dipped to 6.17% from 6.25%. For mortgage rates to decrease further, interest rates must first decrease. Federal Reserve Chair Jerome Powell informed the Senate Committee on Banking, Housing, and Urban Affairs on July 9 that although inflation is heading in the right direction, the Fed must still be ready to lower interest rates.
Over the past 90 days, mortgage rates have fluctuated around the 7% mark. It's uncertain if they will stay below 7% this time, but economists predict a slow rate decline throughout the year.
Realtor.com® Senior Economist Ralph McLaughlin highlighted that the latest jobs and CPI reports indicate slowing inflation, which could mean rate cuts are on the horizon. However, Dr. Lisa Sturtevant, chief economist of BrightMLS, noted that the Fed might hesitate to lower rates soon due to potential impacts on the upcoming presidential election. While this uncertainty may cause some concern, it's important to remember that the housing market has shown resilience in the face of such events in the past.
The Federal Housing Administration (FHA) is updating its 203(k) loan program to offer more generous benefits, aiming to boost the program's usage and increase housing supply.