Mortgage Interest Rates Forecast

Mortgage rates this week

Fixed mortgage rates fell in the week ending Aug. 14 as markets bet that the Federal Reserve will vote to cut rates in September.

• The 30-year fixed-rate mortgage averaged 6.66% APR, down four basis points from the previous week's average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point.

• The 15-year fixed-rate mortgage averaged 5.72% APR, down seven basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.24% APR, up two basis points from the previous week's average.

The July Consumer Price Index report was released this week, which showed inflation acceleration slightly below economists’ expectations. This underscored analysts’ belief that the Fed will lower interest rates by 25 basis points next month. Mortgage interest rates are already easing in line with that expectation.

» MORE: Is it a good time to buy a house? Here's what to consider.

August Mortgage Rates Forecast

Mortgage rates are more likely to go down than up in August.

July’s employment report showed that job growth over the past three months was weaker than expected. That led to speculation that the Federal Reserve could cut short-term interest rates in mid-September.

Even if mortgage rates fall a little bit, it won't be enough to wake up the sleepy housing market. Would-be home buyers dream of mortgage rates below 6.5%, but rates are unlikely to fall that low in August.

» MORE: How the Fed Affects Mortgage Rates