Mortgage Interest Rates Forecast

Mortgage rates this week

Mortgage rates fell in the week ending Aug. 7 after the release of a disappointing employment report.

• The 30-year fixed-rate mortgage averaged 6.7% APR, down 17 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 5.79% APR, down 15 basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.22% APR, down 12 basis points from the previous week's average.

Rates fell after the Aug. 1 release of the July jobs report, which showed that the economy grew by 73,000 jobs. Observers had been expecting higher job growth. Any further news of a slowing economy could send rates downward even more.

» 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 won't fall that low in August.

» MORE: How the Fed Affects Mortgage Rates