Mortgage Interest Rates Forecast

Mortgage rates this week

Interest rates on fixed-rate home loans edged downward the week ending June 26.

• The 30-year fixed-rate mortgage averaged 6.84% APR, down one basis point 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 5.93% APR, down four basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.12% APR, up seven basis points from the previous week's average.

June hasn't been a thrilling month for mortgage interest rates, but at least the average 30-year fixed rate looks likely to close out the month below where it started. We've seen downward movement each week. Barring a weekend surprise, we should see a June average that's at least a tenth of a percentage point below what we had in May.

Even though the Federal Reserve opted to maintain the current federal funds rate last week, Fed governors' public statements already have markets curious about a July cut. Fed decisions are data-driven, though, and there'll be plenty of new info to digest in the coming month. If inflation surges, chances of a rate cut will plunge. But if we see the job market weaken, lower rates could be on the table.