After several weeks of steady declines, mortgage rates have edged slightly higher—marking the end of a downward streak that began in late May. On Wednesday, the average 30-year fixed-rate mortgage rose by 0.06% for top-tier borrowers, a noticeable increase for a single day. However, despite this uptick, rates remain at some of their lowest levels since early April.
This shift, while significant in the short term, should be viewed in context. Rates had been dropping consistently for more than two weeks—an unusually long streak. Statistically, rate bounces become more likely after about five to eight days of continuous movement in one direction. As of yesterday, the streak had lasted 11 days, making a correction inevitable.
Another key factor driving this modest increase is the anticipation surrounding a major economic update: the U.S. jobs report, scheduled for release Thursday morning. Historically, mortgage rates tend to stabilize or even rise slightly before the release of such high-impact data, especially when the market is already trending.
Looking ahead, all eyes are on the jobs report and the upcoming inflation data expected on July 15th. These reports will play a crucial role in shaping expectations about whether the Federal Reserve may lower interest rates as early as this month. While it’s important to note that the Fed’s decisions do not directly dictate mortgage rates, shifts in the Fed Funds Rate expectations often correlate strongly with changes in mortgage rates.
What This Means for You
With volatility on the horizon, timing is critical—especially for homebuyers and sellers. If you’re considering entering the market, it’s essential to stay informed and act strategically.
📉 Buyers: With rates still near multi-month lows, this may be your opportunity to lock in a favorable mortgage before further market shifts.
📈 Sellers: Lower rates tend to increase buyer activity, which can help boost your home’s appeal and shorten time on market.Let Boutique Realty Help You Navigate This Market
At Boutique Realty, we stay on top of market trends so you don’t have to. Whether you’re looking to buy, sell, or invest, our expert team is here to help you make informed decisions in a rapidly changing landscape.