Pros to Know

Mortgage rates rose this week, as concerns about inflation — and predictions for what the Federal Reserve might do about it — firmed up. The average rate on a 30-year fixed-rate mortgage rose 11 points to 6.68% APR in the week ending Sept. 3, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the past five business days. There are a few key drivers behind this week's increase.

Mortgage rates are up slightly this week, mostly due to a spike on Wednesday after new data showed that inflation grew faster than anticipated in July. Rates have since settled back to “normal” (by this week’s standards). The average rate on a 30-year fixed-rate mortgage grew two basis points to 6.57% APR in the week ending Aug. 27, according to rates provided to NerdWallet by Zillow.

Mortgage rates eased downward this week. It's a minor movement for a surprisingly busy news week — there's a lot going on at the moment that has implications for potential home buyers and refinancers. The average rate on a 30-year fixed-rate mortgage fell four basis points to 6.55% APR in the week ending Aug. 20, according to rates provided to NerdWallet by Zillow.

Yes, mortgage rates inched lower for a second straight week. No, don’t get too excited. The average rate on a 30-year fixed-rate mortgage fell four basis points to 6.59% APR in the week ending Aug. 13, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the past five business days.

It might feel like a high-wire act at times, but it’s absolutely possible to buy a new home before you’ve sold your old one. Vickey Barron, a veteran real estate broker at Compass in New York, has a client who's moving to Los Angeles. The client thought it'd take a year to find a home, but she fell in love with a place right away. “And she’s like, now what? I haven’t even listed my other home yet. What am I doing?" Barron says.

In the first week of August, the average 30-year mortgage rate stayed mostly flat at 6.63% APR. This is three basis points lower than a week ago. A basis point is one one-hundredth of a percentage point, and we calculate our weekly average using daily APRs provided by Zillow over the past five business days. This is also 13 basis points higher than July’s monthly average of 6.5%. Mortgage rates gradually increased throughout the month, beginning at 6.28% on July 1 and ending at 6.7% on July 31.

Mortgage interest rates are likely to move higher in August as the war in Iran appears to be intensifying. The war's outbreak initially spurred mortgage rates higher this spring, and rates' fates continue to be tied to news from the Middle East. It's true that the Federal Reserve didn't raise the funds rate at its July 28-29 meeting, and it might seem like, if anything, that would give rates a bit of room to soften.

Mortgage rates could drop a little over the next few days, as central bankers at the Federal Reserve ultimately decided to hold overnight borrowing rates steady at their meeting ending July 29. Mortgage rates jumped in the days leading up to the meeting, as speculation grew among futures traders that central bankers could vote to raise the federal funds rate.

Mortgage rates moved slightly higher this week. But whether that feels like good news or bad news depends on one thing: when you started shopping for a home. The average rate on a 30-year fixed-rate mortgage rose four basis points to 6.51% APR in the week ending July 23, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the past five business days.

The 2008 housing crash was the result of a perfect storm, fueled by reckless lending and blind market confidence. Today, we have stricter underwriting and tempered attitudes, yet 60% of Americans believe we’ll enter a recession in the next year, according to NerdWallet’s Consumer Financial Resilience Index. That fear isn’t entirely unfounded. On average, economic crashes happen every 10 to 15 years, says Cosmo P. DeStefano, a retired CPA and former tax partner at PwC.