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2d ago

Mortgage Rates Hold Steady as Housing Market Faces Fresh Challenges

The 30-year fixed mortgage rate remains at 6.76%, but trade policy shocks and a supply gap continue to hinder buyer confidence.

A home on the market.
Rising home prices, elevated mortgage rates, and limited supply have locked many potential buyers out of the housing market. However, Dave Ramsey notes that there may be change on the horizon soon.
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Overview

  • The average 30-year fixed mortgage rate stayed unchanged at 6.76%, while the 15-year rate dipped slightly to 5.89%, according to Freddie Mac's latest survey.
  • High borrowing costs and a national housing supply deficit of 3.8 million homes are keeping home affordability out of reach for many buyers.
  • April's White House tariff announcements disrupted financial markets and led to a decline in housing contract activity, with May sales figures expected to reflect this drop.
  • The Federal Reserve paused interest rate cuts at its May meeting, leaving potential homebuyers waiting for further rate relief later in the year.
  • A majority of Gen Z and Millennial renters are delaying homeownership, awaiting projected mortgage rate declines to near 6% by 2026.