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3w ago

U.S. 30-Year Mortgage Rate Dips to 6.77% With Housing Market Under Pressure

Fed’s rate-hold in response to tariffs keeps borrowing costs high despite record home prices.

President Donald Trump’s tariffs on imports have added economic uncertainty. The Federal Reserve has paused cutting interest rates because of this.
FILE - A for sale sign stands outside a residence in Niles, Ill., Monday, July 1, 2024. (AP Photo/Nam Y. Huh, File)
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Overview

  • Average 30-year fixed mortgage rate fell to 6.77% from 6.81% last week, its lowest level since early May.
  • The Federal Reserve has held interest rates steady in response to tariff-driven economic uncertainty, keeping borrowing costs elevated.
  • Existing home sales rose 0.8% in May to a 4.03 million annual pace, marking the slowest May in 15 years, with first-time buyers accounting for 30% of transactions.
  • The median price of existing homes climbed to a record $422,800 in May, with supply increasing 6.2% from a year earlier to 1.54 million units.
  • Mortgage refinance rates fell to a 12-week low of 7.00%, and states like New York, Colorado and California report the nation’s cheapest purchase rates near 6.7%.