For the seventh straight month, information compiled by Freddie Mac shows that mortgage rates continued to decline. As of July 2019, the 30-year FRM – Commitment rate, fell by four basis points to 3.77 percent from 3.80 percent in June. The cycle peak was 4.87 percent in November.
According to the June 2019 Federal Open Market Committee meeting statement, the Fed made no change to the interest rate, as expected. It kept the target for the federal funds rate at its setting of 2.25-2.50 percent. Chairman Powell’s opening statement to the House Financial Services Committee in early July reflected his judgment that uncertainties weighing on the outlook. Taking that into account, it is likely that the committee will lower interest rates by 25 basis points to a target range of 2.00-2.25 percent at the upcoming policy meeting on July 30-31.
At the end of July, the 10-year Treasury rate, is up slightly at 2.05 percent from end of June. The lower rate 10-year Treasury rate has contributed to low mortgage interest rates in the last few weeks. The average 30-Year Fixed market rate, according to Freddie Mac, was at 3.75 percent at the end of July compared to 3.73 percent at the end of June. At the beginning of 2019, the average 30-Year Fixed market rate was 4.51 percent.