Mortgage Interest Rates Forecast

Mortgage rates this week

Fixed mortgage rates took a small upward bounce in the week ending Aug. 21, ending a two-week downward streak.

• The 30-year fixed-rate mortgage averaged 6.68% APR, up two 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 5.77% APR, up five basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.2% APR, down four basis points from the previous week's average.

Investors have become less confident that the Federal Reserve will cut short-term interest rates next month. That could reduce downward pressure on mortgage rates in the coming weeks.

» 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 during the rest of 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 more, 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