Average US mortgage rate falls to 6.67%, lowest since April, sparking increased interest in homebuyers

From Yahoo Finance: 2025-07-03 12:03:00

The average rate on a 30-year U.S. mortgage fell for the fifth consecutive week to its lowest level since early April, providing relief for potential buyers facing rising home prices. Mortgage rates dropped to 6.67% from 6.77% last week, with 15-year fixed-rate mortgages falling to 5.80%.

High mortgage rates have contributed to a sales slump in the U.S. housing market, with sales of previously owned homes hitting a 30-year low last year. The new home market is also feeling the pressure, as sales fell almost 14% in May. However, recent data suggests a potential uptick in sales, fueled by lower mortgage rates.

Mortgage rates, influenced by factors like Federal Reserve interest rate policies and bond market expectations, have seen a recent decline. The 10-year Treasury yield, a key indicator for home loan pricing, dropped to 4.33%. Despite remaining close to this year’s high of just above 7%, rates have fallen for five straight weeks.

The recent decline in mortgage rates has sparked increased interest from homebuyers, leading to a 2.7% rise in mortgage applications last week. Economists anticipate rates to remain relatively stable in the upcoming months, with 30-year mortgage rates projected to stay between 6% and 7% this year.

Read more: Average long-term US mortgage rate falls to 6.67%, the lowest level since early April