Mortgage Rates Continued to Decline in July

In July, mortgage rates continued to drop, averaging 6.85%. Freddie Mac reports that this represents a decrease of 7 basis points (bps) from June’s 6.92%. The current rate is very close to the 6.84% rate from the same time last year.

According to the NAHB, the 15-year fixed-rate mortgage also saw a decrease, dropping by 5 bps from June to 6.14%, and is now lower compared to last July by 4 bps. Additionally, the 10-year Treasury rate declined 9 bps from 4.37% in June to 4.28%.

Per the NAHB forecast, we expect 30-year mortgage rates to decline slightly to around 6.66% at the end of 2024 and eventually to decline to just under 6% by the end of 2025. The NAHB outlook anticipates the federal funds rate to be cut by 25 bps no later than the December Federal Reserve meeting and six more rate cuts in 2025 as inflation approaches the Fed’s policy target.