“The incoming data indicates that inflation is declining, dropping to its lowest annual rate in more than two years,” said Sam Khater, chief economist at Freddie Mac. “However, increases in housing costs, which account for a large share of inflation, remain stubbornly high, mainly because of inventory decline relative to demand.” Erin Sykes, chief economist at Nest Seekers International, commented: “The 30-year mortgage has been hovering around 7% for about nine months despite the Fed continuing to raise rates. I expect it will stay there for the foreseeable future with Slight fluctuations up/down. This is in line with the 50-year average of 7.77%.” “The Fed understands that fighting inflation is a bit like fighting fire,” added Marty Green, director of law firm Polonsky Beetle Green. “Just because the flames have died down, for now, doesn’t mean the ingredients for ignition are still there. But continued progress on the inflation front should ease pressure on the Federal Reserve to tighten interest rates further after the July hike, which in turn should have a positive effect.” On Mortgage Rates Want to keep up with the latest mortgage news Get exclusive interviews, breaking news and industry events in your inbox, and always be the first to know by signing up for our free daily newsletter.