Finally, some good news for anyone who’s been endlessly scrolling Zillow listings while muttering, “Maybe next year.” According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on a 30-year fixed mortgage dropped to 6.58%, down from 6.63% last week.
This marks the lowest level since October—and it’s a glimmer of hope for homebuyers who’ve been locked out of the market by painfully high borrowing costs. For perspective, the 30-year rate stood at 6.49% a year ago. “Purchase application activity is improving as borrowers take advantage of the decline,” said Sam Khater, Freddie Mac’s chief economist. Translation: Some folks are finally dipping their toes back into the housing market.
15-year rates join the party
Not to be left out, the 15-year fixed mortgage rate slid too—down to 5.71% from 5.75% last week. A year ago, it was 5.66%, so while the drop isn’t huge, it’s at least headed in the right direction. Think of it like finding a $20 bill in an old coat pocket—not life-changing, but still worth celebrating.
The housing affordability crisis isn’t fixed—yet
Of course, a slight dip in rates doesn’t magically solve America’s housing woes. The State of the Nation’s Housing report from Harvard’s Joint Center for Housing Studies paints a tough picture: high prices and elevated rates have pushed homebuying activity to its lowest point since the mid-1990s.
Add in soaring insurance premiums, rising property taxes, and rent that feels more like a ransom note, and it’s clear why so many Americans feel priced out. In fact, 47 major metro areas now require homebuyers to spend more than 30% of their income just to secure a place. That’s not a starter home—that’s a starter headache.
Treasury secretary wants a fix
Treasury Secretary Scott Bessent isn’t ignoring the problem. Speaking to FOX Business, Bessent called housing affordability one of his “big projects for the fall.” If he can pull it off, he might just become every millennial’s new favorite government official. “We are really going to work on this housing affordability crisis,” he promised. Homebuyers everywhere are crossing their fingers—and maybe lighting a few candles.
Why summer stay sluggish
Historically, real estate heats up in the summer, with June being the busiest month of all. But this year? Not so much. Despite the dip in mortgage rates, homebuying remained sluggish. Realtor.com senior economist Joel Berner says that while some buyers are encouraged, it might take more sustained rate cuts to get people fully back in the game.
Translation: lower rates are like a friendly “open house” sign—it gets people to stop and look, but not everyone is ready to step inside just yet.
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What it means for buyers
If you’ve been waiting on the sidelines, this might be the moment to at least start browsing more seriously. Lower rates mean smaller monthly payments—or the ability to afford a slightly better home without breaking the bank. But don’t expect a full-on shopping spree just yet.
With affordability still stretched thin, it’s more like a cautious return to the market than a stampede. Buyers who act now may find less competition than in past years—and maybe even a motivated seller or two.
