Mortgage rates decreased again this week, with the average rate for a 30-year fixed-rate mortgage falling to 6.77%, down from 6.81% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.86%.
It was the fourth consecutive week that mortgage rates gradually declined.
“Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April,”says Sam Khater, chief economist for Freddie Mac, in a statement. “Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market.”
As of June 26, the average rate for a 15-year fixed-rate mortgage was 5.89%, down from 5.96% last week and down from 6.16% the same week a year ago.
“While the changes are small, [rates] continue a positive three-week trend of mild declines,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “This consistency is offering some welcomed stability for homebuyers and homeowners after a stretch of rate volatility earlier this year.”
“The pullback in rates is largely tied to easing Treasury yields, as investors increasingly anticipate that the Federal Reserve could start cutting rates later this year—possibly as early as September,” Dedhia says. “That growing optimism, along with a steady flow of moderate economic data, has helped reduce pressure on mortgage-backed securities, creating room for mortgage rates to slide slightly without major economic shifts.”
“For consumers, this kind of rate movement matters,” he adds. “With the 30-year staying under the key 7 percent threshold, affordability is holding steady – giving buyers more room to plan and potentially opening refinancing opportunities for homeowners. It’s a smart time to explore your options with a mortgage advisor, as even small changes in rates can add up to real savings over the life of a loan.”
Photo: Towfiqu Barbhuiya