Overview

• 30-year fixed rates reversed a three-day gain on July 30 to average 6.86%, with refinance rates falling to 7.01% after a four-day increase.
• Total mortgage applications declined 3.8% last week to their lowest level since May, with purchase requests down 6%, refinance filings slipping 1%.
• Experts say rates must fall to roughly 4.43% or home prices drop by about 18% to restore affordability for the typical buyer.
• In high-cost coastal metros including New York, Los Angeles and San Francisco even a zero percent mortgage rate would not bring payments within reach of median incomes.
• The Federal Reserve has maintained benchmark rates steady without planning cuts before September, prompting advice to buy now then refinance or use adjustable-rate mortgage options later.