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Mortgage rates ticked up as compared to last week, but remained at the lowest level in over a year as hopes for rate cuts rose amid cooling inflation.
The 30-year fixed-rate is expected to likely trend down in the coming months as inflation continues to slow, according to the Freddie Mac Primary Mortgage Survey.
The 30-year FRM averaged 6.49% as of August 15, slightly up from last week when it averaged 6.47%, and down from 7.09% in the year ago period.
The 15-year FRM averaged 5.66%, up from last week, when it averaged 5.63%, but down from 6.46% as of the same period last year.
On Wednesday, the July retail inflation came in line with expectations, while the producer price index came in softer than expected on Tuesday.
“While rates increased slightly this week, they remain more than half a percent lower than the same time last year,” said Sam Khater, Freddie Mac’s chief economist.
In 2023, the 30-year fixed-rate mortgage nearly hit 8%, slamming the brakes on the housing market, Khater said, adding “lower rates are good news for potential buyers and sellers alike.”
