Mortgage Interest Rate Report - Jul
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Mortgage Rates News & Analysis

Long-term mortgage interest rates continued their move to record highs for 2015, according to data from mortgage finance company Freddie Mac. July was the first month that interest rates stayed above 4 percent for the entire month since September 2014.

July 2

Rates jumped up to a new yearly high during the first week of July. The average rate on a 30-year fixed rate mortgage (FRM) climbed to 4.08 percent, excluding fees, up from 4.02 percent at the end of June. The 15-year FRM increased to an average rate of 3.24 percent from 3.21 percent and the one-year adjustable rate mortgage (ARM) inched up to 2.52 percent from 2.50 percent.

July 9

During the week of the Independence Day holiday rate fell back down. The average 30-year FRM rate slipped to 4.04 percent, the 15-year FRM rate fell to 3.20 percent and the one-year ARM dropped back to 2.50 percent.

July 16

The next week brought another record high for 2015. The 30-year FRM rate yo-yoed back up to 4.09 percent while the 15-year FRM rate jumped to 3.25 percent. The one-year ARM rate however was unchanged at 2.50 percent.

July 21

Rates fell back again in the following week, with the rate on the 30-year FRM averaging 3.04 percent. The 15-year FRM slid back to 3.21 percent and the one-year ARM rate increased to 2.54 percent.

Forecast

While the economy has not produced stellar reports, there have been enough positive improvements to warrant promises of rate increases from the Federal Reserve before the end of 2015. So far it has been 9 years since the last Fed increase. The buzz about rising Fed rates may be tempered by foreign economic travails (i.e. Greece�s financial status) but the overall trend will continue higher. Rates are likely to stay above 4 percent for the foreseeable future.

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