Forecast mortgage rates for July
I think that in July mortgage rates will remain about the same. The average monthly rate on a 30-year fixed-rate mortgage will range from 2.8% to 3% per annum. This is within one tenth of a percentage point on either side of the June average of 2.9%. I think that in this range, they are more likely to go up than down.
In June, it seemed that mortgage rates were insulated from the boisterous economic reports, and this could continue into July.
What happened in June
In early June, I predicted that mortgage rates will rise a little. But the 30-year fixed rate mortgage has dropped. The monthly average fell from 2.94% in May to 2.9% in June.
June was marked by a disappointing employment report, news of rising inflation and a message from the Federal Reserve that it could start raising short-term rates in 2023. None of this news significantly affected mortgage rates. I expected the Fed’s announcement to raise mortgage rates higher than it did.
Regulators update ransom protection
The foreclosure moratorium has been extended to July 31 for mortgages granted by Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs. After the end of the moratorium, mortgage services will have to make a good faith effort not to foreclose homeowners who delay mortgage payments.