Instant Reaction: Mortgage Rates - July 25, 2024

As of July 25, 2024, mortgage rates have remained stable. The 30-year fixed mortgage rate, as reported by Freddie Mac, is virtually unchanged at 6.78% this week, compared to 6.77% last week.

Impact on Homebuyers

With the current rate of 6.78%, here’s what you can expect for your monthly mortgage payments on a median-priced existing home priced at $426,900:

• With 20% down: Your monthly payment would be approximately $2,222.

• With 10% down: Your monthly payment would be around $2,500.

Positive Economic Indicators

Today’s economic news brought some positive developments. The GDP figures were stronger than expected, indicating robust economic performance. The PCE (Personal Consumption Expenditures) price index, which the Federal Reserve closely monitors, increased by 2.6% for the second quarter, down from 3.4% in the first quarter. Additionally, the Core PCE, which excludes food and energy prices, rose by 2.9%, a decline from 3.7%.

Ongoing Challenges

Despite these positive signs, challenges remain. There is a significant divide among consumers: some are spending freely, while others are still feeling the strain of inflation. This disparity is an important factor as the Federal Open Market Committee (FOMC) prepares to meet next week. It is unlikely that the Fed will lower the Fed Funds Rate at this meeting, with a more probable decision to hold off on any rate changes until September.

Stay tuned for further updates and insights as we continue to monitor these developments and their impact on the housing market.

For any questions or personalized advice, feel free to reach out. Your journey to finding the perfect home is our priority.

McCord Realtor