Mortgage rates
They are lower on a year-over-year basis, albeit not by a large amount.
The 30-year fixed rate loan averaged 6.89% on Thursday morning, down from 6.95% on July 3 and
Meanwhile, the 15-year FRM averaged 6.17%, down from last week’s 6.25% and 6.30% one year ago.
Last week’s PMMS was released a day early because of Independence Day.
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As of 11 a.m. Thursday morning, the 10-year Treasury was just under 4.18%, down from a July 1 high of 4.49%.
June’s core Consumer Price Index, released earlier on Thursday, increased 0.1% from May. On an annual basis it was up 3.3%. These numbers exclude food and energy costs.
Shelter prices were up 0.2% from the prior month and 5.2% over June 2023.
“Given the recent data showing cooling inflation and slower job growth, we expect the 30-year fixed rate will decrease slowly to around 6.6% by the end of the year,” Mortgage Bankers Association President and CEO Bob Broeksmit said in a Thursday morning comment on the group’s Weekly Application Survey.
The market is now looking at a September short-term rate cut from the Fed, although it remains unlikely a July reduction is in the cards, experts on CNBC and Bloomberg said this morning. Previously observers anticipated a single rate cut likely in December.
While the Fed’s actions do not directly affect mortgage rates, it does impact investors’ actions on longer-term bonds such as the 10-year Treasury.
Lender Price product and pricing engine data posted on the National Mortgage News website put the 30-year fixed at 6.936% at 11 a.m. on Thursday. Midmorning on July 3, the 30-year FRM was at 7.023%.
Zillow’s rate tracker was at 6.54%, down 18 basis points from last week’s average of 6.72%.