Mortgage Rates Today, Wednesday, July 1: A Little Higher

The average interest rate on a 30-year fixed-rate mortgage climbed over the first two days of July, with two financial outlets reporting different figures for the increase.

NerdWallet, citing data from Zillow, reported on July 1 that the average rate rose to 6.28% APR ^[1]. The following day, a separate NerdWallet analysis stated the rate had jumped to 6.40% APR, a 12 basis point increase from the prior day and 15 basis points higher than a week earlier ^[2]. A basis point is one one-hundredth of a percentage point. The discrepancy between the two reports was not immediately explained. The July 2 report noted that while rates have fluctuated daily, the average 30-year mortgage rate in June was 6.34%, nearly identical to May's average of 6.35% ^[2].

Rates are likely to rise further throughout the summer, according to the July 1 analysis ^[1]. The economy is influenced by various factors, including new inflation reports, job numbers, Federal Reserve meetings, and global news ^[2]. The Bureau of Labor Statistics released a jobs report on July 2 showing job gains came in notably below projections, which could make the Federal Reserve more likely to hold rates steady at its upcoming meeting rather than consider a hike ^[2]. While the Fed does not set mortgage rates directly, its policy decisions influence borrowing costs throughout the economy ^[2].

For homeowners considering refinancing, both reports indicated it might make sense if today's rates are at least 0.5 to 0.75 of a percentage point lower than their current rate ^[1][2]. With rates at their current levels, a refinance could be worth considering for those with a rate around 6.90% or higher ^[2]. Both analyses also stressed that there is no universal "right" time to start shopping for a mortgage, and what matters is whether a buyer can comfortably afford a mortgage now at today's rates ^[1][2].