Great news if you’ve been keeping an eye on the housing market or dreaming of locking in a better mortgage rate—rates just dropped again. Yep, for the fourth week in a row, they’re headed down, and we’ve now hit the lowest point since early May. If you’ve been sitting on the fence about buying or refinancing, this might just be your signal to lean in a little closer.
Here’s the scoop: What’s the rate now?
Freddie Mac, the folks who keep tabs on the mortgage scene, just released their latest numbers, and the average rate on a 30-year fixed mortgage has dipped to 6.77%, down from 6.81% last week. That may not sound like a huge shift, but in mortgage terms, every little bit counts—especially over 15 or 30 years.
For some perspective, around this same time last year, the 30-year rate was 6.86%, so we’re actually looking a bit better than we were in 2024. As for the 15-year fixed mortgage? That’s dropped too, now averaging 5.89%, compared to 5.96% a week ago.
Stability is the secret sauce
What’s interesting (and kind of comforting) is that mortgage rates have been surprisingly stable for a few months. According to Sam Khater, Freddie Mac’s chief economist, rates have only bounced around within a 15-basis point range since mid-April. So if you’re feeling skittish about jumping into the housing market, at least you’re not facing wild swings in borrowing costs.
But is it affordable? That’s the bigger question
Here’s where things get a bit more real. Even with lower rates, the overall affordability of homes in the U.S. is still a challenge. A new report from Realtor.com shows that in 47 out of the top 50 metro areas, homebuyers need to spend more than 30% of their income on housing. That’s kind of a red flag since financial experts generally recommend staying under that 30% mark for mortgage payments.
Still, there are bright spots. If you’re in Pittsburgh, Detroit-Warren-Dearborn (Michigan), or St. Louis, you’re in luck. Those are the three major metros where the average income still allows people to stay under the 30% threshold when buying a median-priced home.
Why does this matter to you
Even if you’re not planning to move to St. Louis or Pittsburgh, the overall trend is important. Lower rates could mean lower monthly payments, better buying power, and more options when you’re shopping for a home. And with home inventory slowly creeping up, you might have some solid choices without needing to battle 20 other buyers for the same house.
Bottom line? If you’re in the market or thinking about jumping in, this rate drop could be a golden opportunity. Keep an eye on things—and maybe start crunching the numbers. Your next home might be closer than you think.
You will want to read this much later;
Why Safe Harbor 401(k) plans are so useful for small businesses
If you invested $1,000 in Chevron Coproration 10 years ago, here’s how much you would have today
What is Cyngn? The stock that has soared over 150% on news of collaboration with Nvidia
Can pet foods be purchased with SNAP Payment benefits and what is covered by Food Stamps?
Payments going out: Wells Fargo mortgage settlements are in the post
