Mortgage Rates Today: Surprise Dip Unlocks Lowest Levels in Months—Is Now the Time to Refinance?

H2: Mortgage Rates Edge Lower, Offering Late-Summer Relief to Borrowers After hovering stubbornly near 7% for much of July, U.S. mortgage rates slipped again this week, touching their lowest point since April and giving prospective buyers and refinancers a narrow window of opportunity. Freddie Mac’s Primary Mortgage Market Survey shows the average 30-year fixed rate at 6.63% for the week ending Aug. 7, down nine basis points from the prior week and 22 basis points below the mid-July peak. H3: Today’s National Averages • 30-year fixed: 6.66% (-0.10%) • 15-year fixed: 5.75% (-0.07%) • 5/1 ARM: 6.05% (-0.04%) H3: Why Rates Are Falling Treasury yields retreated after July’s jobs report showed cooling wage growth and a slight uptick in unemployment, easing pressure on the Federal Reserve to deliver another rate hike at its September meeting. Investors now assign less than a 25% probability to a hike, pushing the 10-year Treasury yield below 4.0% for the first time in six weeks, a move that generally drags mortgage rates lower. H3: Market Outlook Economists caution that volatility will remain high ahead of August inflation data and the Fed’s Jackson Hole symposium later this month. “If core inflation surprises to the upside, the rate rally could reverse quickly,” said Lawrence Yun, chief economist for the National Association of Realtors. Most forecasts call for 30-year rates to hover in the mid-6% range through early autumn before drifting toward 6.25% by year-end, assuming no upside shocks to inflation or energy prices. H3: What Lower Rates Mean for Homebuyers • Increased affordability: Today’s drop trims about $55 from the monthly payment on a $300,000 loan compared with last month’s peak. • Inventory still tight: Active listings remain 18% below pre-pandemic norms, limiting buyers’ leverage even as borrowing costs ease. • Lock-and-shop strategy: Lenders are reviving 60- to 90-day lock programs, letting shoppers secure today’s rate while they hunt for a home. H3: Refinance Opportunities Re-Emerging Roughly 4.2 million homeowners now have mortgages with rates above 7%, making them potential refinance candidates if the 30-year falls closer to 6% later this quarter, according to Black Knight data. Cash-out refis are also rebounding as homeowners tap record equity levels to consolidate high-interest credit-card debt. H3: Tips to Capture Today’s Best Rate 1. Boost your credit score above 740 to qualify for lenders’ top pricing tiers. 2. Compare quotes from at least three lenders—rate spreads exceed 45 basis points in the current market. 3. Consider points: Paying 1% of the loan amount can shave roughly 0.25% off the rate, beneficial for buyers who expect to stay put for seven years or longer. 4. Explore adjustable-rate options if you plan to move within five years; today’s 5/1 ARM carries a 60-basis-point discount to the 30-year fixed. H3: Bottom Line Borrowers have a fresh—if possibly brief—chance to lock in sub-6.7% rates before the next round of economic data. Acting quickly, maintaining strong credit, and comparison-shopping remain the keys to maximizing savings in a still-uncertain rate landscape.