The average rate on the 30-year fixed-rate mortgage was unchanged this week as investors continue to expect the Federal Reserve will cut interest rates later this month.

The rate was steady from a week ago at 6.35%, Freddie Mac reported on Thursday. A year ago, the average rate on a 30-year fixed-rate loan was 7.12%.

Separately, the average rate for the 15-year fixed mortgage was 5.47%, down from 5.51% a week prior. The rate on a 15-year loan was 6.52% a year ago.

“Mortgage rates remained flat this week as markets await the release of the highly anticipated August jobs report,” Sam Khater, Freddie Mac’s chief economist, said in a press release.

Overall, mortgage rates have been on a downward trend since May.

“Even though rates have come down over the summer, home sales have been lackluster. On the refinance side however, homeowners who bought in recent years are taking advantage of declining mortgage rates in order to lower their monthly payments," the economist said.

Mortgage and refinance rates today, Sept. 5, 2024: Rates barely move prior to jobs report

Some buyers are taking advantage of lower borrowing costs. Applications for a mortgage to purchase a home rose 3% from a week ago but still remained 4% lower than the same week a year ago, according to data from the Mortgage Bankers Association (MBA) released Wednesday.

Applications to refinance an existing home loan slipped 0.3% for the week but were 94% higher than the same week a year ago when mortgage rates were well above 7% , per the MBA.

“Refinance applications were slightly down but continued to show strong annual gains as borrowers with higher rates have been refinancing to lower their monthly payments,” Joel Kan, MBA’s chief economist, said in a press release. “The refinance share of applications averaged almost 46 percent in August, the highest monthly average since March 2022.”

High home prices and borrowing costs continue to scare buyers away. Pending home sales, a forward-looking indicator of home sales based on contract signings, dropped in July to the lowest level ever recorded, according to the National Association of Realtors (NAR), as expectations for lower rates have the housing market at a standstill.

"A sales recovery did not occur in midsummer," NAR chief economist Lawrence Yun said in a press release late last month. "The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming US presidential election."

He added that "falling mortgage rates will no doubt bring buyers into the market."

Mortgage rates hold steady — is this a good time to buy a house?

@daniromerotv .