Overview

• Freddie Mac’s weekly survey showed the average 30-year fixed rate fell to 6.58% for the week ending Aug. 14, marking its lowest reading since March as daily averages hovered around 6.69%.
• Traders are wagering on a 25 basis point cut by the Federal Reserve in September, which has been priced into mortgage offerings and helped drive several consecutive days of rate declines.
• Mortgage Bankers Association data indicate refinance applications reached a 42% share of total loan requests, their strongest pace since April, but only 18.8% of existing borrowers have rates high enough to benefit immediately.
• Experts say mortgage rates are following 10-year Treasury yields and bond-market responses to softer economic data rather than the Fed funds rate, heightening sensitivity to inflation reports.
• Home prices remain elevated, with the National Association of Realtors reporting a record median of $429,400 in Q2, which continues to limit purchasing power despite lower borrowing costs.