Mortgage rates dipped below 6.8% due to geopolitical easing and Treasury yields falling.

From Yahoo Finance: 2025-06-26 12:00:00

Mortgage rates have dropped for the fourth week in a row due to easing geopolitical tensions and falling Treasury yields. The average 30-year fixed rate is now 6.77%, and the 15-year rate is 5.89%. Fed officials are considering cutting interest rates, but this doesn’t directly affect mortgage rates. Traders predict a rate cut by September.

Although mortgage rates have slightly decreased recently, they remain high in the high 6% range. This, paired with high home prices, has slowed down home buying this year. Housing contract activity improved slightly in May, but new home sales saw a significant drop. Mortgage applications for new homes remained stable, while refinancing applications increased by 3% week-over-week.

The Mortgage Bankers Association forecasts rates to end the year at around 6.7%, while Fannie Mae predicts a gradual decline to 6.5%. Zillow’s senior economist believes that while slightly lower rates may improve affordability, significant changes are unlikely. Fed Chairman Jay Powell stated the Fed is not in a rush to cut rates during congressional testimony.



Read more at Yahoo Finance: Mortgage rates fall below 6.8% for first time since May