Mortgage Interest Rates

The 30-year fixed-rate mortgage has averaged 6.92% in July 2024. The higher-for-longer interest rate environment continues to put downward pressure on builder sentiment and overall building conditions. And faced with record-high prices for homes, many would-be buyers are opting to stay on the sidelines and wait for housing affordability conditions to improve.

The annual rate of Inflation is still above the Federal Reserve’s target of 2%, although it appears to be back on a cooling trend, according to NAHB Chief Economist Robert Dietz. NAHB is forecasting Fed rate reductions will begin toward the end of 2024, which will lower interest rates on construction loans for builders and developers, as well as on mortgages for home buyers.