Mortgage Rates Drop, But Still Above 7%

Mortgage rates recorded a decline but still remained above the 7% mark in the latest Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC).

The 30-year fixed-rate mortgage averaged 7.18% as of Aug. 31, down from last week when it averaged 7.23%. A year ago at this time, it averaged 5.66%.

The 15-year fixed-rate mortgage averaged 6.55%, unchanged from last week. A year ago at this time, it averaged 4.98%.

“Mortgage rates leveled off this week but remain elevated. Despite continued high rates, low inventory is keeping house prices steady,” said Sam Khater, Freddie Mac’s chief economist. “Recent volatility makes it difficult to forecast where rates will go next, but we should have a better gauge in September as the Federal Reserve determines their next steps regarding interest rate hikes.”