Freddie Mac Mortgage Rates—July 3, 2024
What happened to mortgage rates this week
“The Freddie Mac rate for a 30-year mortgage jumped 9 basis points to 6.95% this week, undoing the last two weeks of downward progress as 10-year treasury yields hovered between roughly 4.4% and 4.5%. While much of the country gears up for Thursday’s holiday, investors are awaiting Friday’s jobs report, which will signal how employment fared in June.
In the most recent meeting, the FOMC signaled their desire to see more convincing evidence of slowing inflation before cutting interest rates. Last week’s Personal Consumption Expenditure/PCE inflation data showed that inflation fell in May to its lowest annual rate in more than three years.
After a relatively hot May jobs report, investors are expecting the June employment data to trend lower. Falling inflation and employment could mean the Fed cuts interest rates earlier in the fall and that borrowers may start to see some relief from high borrowing costs.
What it means for the housing market
Mortgage rates have fallen nearly 40 basis points since early May as economic data has largely fallen in line with the Fed’s desired path towards lower inflation. Though rates have once again fallen below the 7% threshold, many buyers will need to see more progress before re-entering the market. Mortgage rates have remained above 6% since fall 2022, which has stifled seller activity and made homebuying a daunting prospect. However, many hopeful homebuyers have found creative ways to make homeownership a reality.
According to a recent survey, roughly one-third of buyers who are caring for both their children and their parent(s)/grandparent(s) say that their circumstance has led to homeownership. Though taking on new familial responsibilities can be challenging, in some cases, combining forces with family can be financially beneficial. Moving forward, a downward mortgage rate trend could stoke seller activity and take some pressure off of prices, making the market more hospitable for buyers this summer.