Instant Reaction: Mortgage Rates, August 8, 2024

Facts: The 30-year fixed mortgage rate from Freddie Mac dropped to 6.47% this week, compared to 6.73% last week. At 6.47%, with 20% down, a monthly mortgage payment on a home with a price of $400,000 is $2,016. Compared to October 2023, when rates were 7.79%, this is a monthly payment difference of $285 —$3,420 a year.

Positive: Mortgage rates are at their lowest weekly level since May 2023. This is the biggest one-week fall in mortgage interest rates in nine months. Mortgage applications are up. Home buyers who stepped off to the sidelines while waiting for rates to fall: rates have now fallen.

Negative: Yes, this is just one component of housing affordability, and yes, home prices are still high.  Additionally, this is a weekly average.