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The average 30-year fixed mortgage rate dipped back toward 7% this week, settling at 7.09%, according to Freddie Mac. This is the first time the weekly average rate has fallen in over a month.
Recent rate volatility — including this week's drop from 7.22% and last month's steady rise — has prompted some financial institutions to modify their mortgage outlook for the rest of 2024.
The National Association of REALTORS® (NAR) now expects average rates to settle at 6.5% by year-end, modified from the 6.3% predicted at the beginning of the year.
"The Federal Reserve has delayed rate cuts," said Lawrence Yun, NAR's chief economist. "I would have thought that by now, rates would be lower and rate cuts would have begun. Whatever rate cut the Federal Reserve does not do this year will simply get pushed back to 2025. They're calling for a September rate cut, but we'll see."