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3w ago

Mortgage Rates Slip to 6.72% After Fed Hold, Homebuying Cools

Despite the slight drop following the Fed’s fifth rate pause, borrowing costs remain elevated; projections show rates holding near current levels into next year.

High mortgage rates are just one factor contributing to the housing affordability crisis.
for sale sign in front of house
FILE - A for sale sign stands outside a residence in Niles, Ill., July 1, 2024. (AP Photo/Nam Y. Huh, File)
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Overview

  • The average 30-year fixed mortgage rate fell to 6.72% in the week ending Wednesday, down from 6.74%, according to Freddie Mac.
  • Purchase applications declined about 6% week-over-week and June contract signings slipped 0.8% as near-7% rates continue to deter buyers.
  • Unsold existing-home supply rose 9% in April to 1.45 million units, equal to a 4.4-month inventory—the highest in five years.
  • The Mortgage Bankers Association projects 30-year rates will only modestly ease to around 6.5% over the next year amid sustained Treasury yield pressures.
  • Zillow economist Anushna Prakash says rates would need to fall to roughly 4.43% to restore typical buyer affordability, a level deemed unrealistic.