The average 30-year mortgage rate in the first week of August remained relatively steady at 6.63% APR, which is three basis points lower than the previous week. A basis point is equivalent to one one-hundredth of a percentage point, and our weekly average is calculated using daily APRs provided by Zillow over the past five business days.
Compared to July’s monthly average of 6.5%, the current rate is 13 basis points higher. Mortgage rates saw a gradual increase throughout July, starting at 6.28% on July 1 and ending at 6.7% on July 31.
The lowest average daily rate this week was 6.47% on Thursday, Aug. 6, according to Zillow data. This marked a 12-basis-point decrease from the previous day’s average. The drop in rates followed weaker-than-expected job growth data released by ADP in July.
If the upcoming jobs report from the Bureau of Labor Statistics reflects the downward trend seen in ADP’s data, the likelihood of a rate hike in September could decrease, potentially leading to lower mortgage rates.
Conversely, the highest average daily rate this week was 6.7% on Tuesday, Aug. 4, similar to the rates at the end of July. Mortgage rates tend to rise during periods of geopolitical tensions, such as the escalation in Iran, which was reflected in the highest average daily rate of 6.75% on July 27.
Looking ahead, the next key indicator that could impact mortgage rates is the Consumer Price Index, which will provide insights into inflation trends. Analysts will also consider the relationship between inflation and unemployment data to gauge the likelihood of a rate hike in September and its effect on mortgage rates.
While it’s challenging to predict market movements accurately, certain factors, including geopolitical events and economic data, can influence mortgage rates. Keeping an eye on developments in Iran and upcoming economic reports can help borrowers make informed decisions to secure favorable rates. If you are hearing positive feedback, it may be a good idea to consider applying. However, timing is only one factor to consider. It is also important to shop around and compare term options and rates from multiple lenders. We recommend obtaining quotes from at least three lenders. If the current rates are not affordable for you, focus on improving your financial profile by paying off debts and working on your credit health so that you are in a better position to secure a good deal when rates decrease. text in a clearer and more concise way:
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