Mortgage Rates Finally Dropping

Good news! The average interest rate on 30-year fixed mortgages fell to its lowest level since mid-March. It doesn’t sound like much, but at least the numbers are moving in that direction. And they might continue to do so, for a housing market struggling to find its footing, if the Federal Reserve cuts rates in the months ahead, as expected. 

The 30-year fixed mortgage rate averaged 6.77% for last week, which was down from 6.89% the week prior, and is at its lowest number since mid-March. It’s also slightly down from this same time a year ago, when it was 6.78%. 

This trend is needed, as purchase applications are still 5% lower than the spring. Homebuyers still seem to be waiting on better news. Single-family home construction hit an eight-month low in June, while sales of pre-owned homes have dropped in each of the last three months. And this comes after 2023, where the volume of existing-home sales reached its lowest level since 1995.

Let’s just hope that the 6.77% number keeps dropping.