Mortgage Interest Rates Forecast

Mortgage rates this week

Average mortgage interest rates were lower across the board in the week ending Aug. 28, reflecting markets' renewed faith in upcoming rate cuts.

• The 30-year fixed-rate mortgage averaged 6.59% APR, down nine 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 5.7% APR, down seven basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.06% APR, down 14 basis points from the previous week's average.

On Friday, Aug. 22, Federal Reserve Chair Jerome Powell gave a speech at an annual Fed gathering in Jackson Hole, Wyoming. Fed governors always hold their cards close to their chests. But markets interpreted Powell's hint that the current economic situation "may warrant adjusting our policy stance" as a tell, signaling lower rates to come.

As the likelihood of a September rate cut feels more certain, we've seen mortgage rates edging down. Mortgage interest rates don't usually rise or fall directly with the Fed's moves. But mortgage rates do move with the market, and when the vibes are saying rate cut, mortgage rates tend to go down.

»MORE: How the Fed Affects Mortgage Rates

August Mortgage Rates Forecast

Mortgage rates have fallen decisively this month, with the average on the 30-year mortgage dropping from 6.84% in July to 6.66% in August.