At 7%, mortgage rates attained their highest point of the year.

However, experts predict that interest rates may decline in the future weeks as a result of fresh inflation data.

According to Freddie Mac, the 30-year fixed mortgage rate increased to 6.96% from 6.82%.

Inflation has declined to its lowest level since early 2021, according to newly released government data.

As a result, the federal funds rate is anticipated to fall next week.

The current rate of 6.96% makes the monthly mortgage payment on a median-priced home $2,565, up from $2,565 a week ago.

This increase in interest rates is poor news for prospective buyers, as higher rates have discouraged sellers from putting their homes on the market, thereby keeping inventory low and home prices high.

Economist Jiayi Xu suggests that encouraging inflation data could be used as the premise for another ‘wait-and-see’ approach at the upcoming FOMC meeting, possibly reversing the recent increase in mortgage rates.

This would make the environment more favorable for homebuyers in the autumn.