Stable but stubbornly high
Despite the modest decline, mortgage rates remain stuck in the high 6% range, limiting any substantial improvement in housing affordability.
“Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April,” said Sam Khater, chief economist at Freddie Mac.
A report from Yahoo Finance noted that Federal Reserve chairman Jerome Powell testified before Congress this week, stating that the Fed is not rushing to cut rates. Markets anticipate a potential reduction by September, according to CME FedWatch data.
Mixed signals in the housing market
The persistent rate environment has kept housing activity subdued. While home shoppers now benefit from a broader selection of listings and improved bargaining power, affordability remains a key concern.
“Slightly lower mortgage rates toward the end of the year could further improve affordability, but significant improvements appear unlikely,” said Kara Ng, senior economist at Zillow Home Loans.