The average rate for a 30-year mortgage has decreased, easing the burden on buyers

• The average rate for a 30-year mortgage has dropped to 6.72%
• The decline in rates does not lead to an increase in home sales
• The housing market remains stagnant since 2022

The average rate for a 30-year mortgage in the U.S. has decreased to 6.72% from 6.74% the previous week, providing some relief to homebuyers who are grappling with rising home prices and high borrowing costs.

The rate for a 15-year fixed mortgage also fell to 5.85% from 5.87% the previous week. A year ago, the rate was 5.99%, according to Freddie Mac data.

High mortgage rates continue to impact the housing market in the U.S., which has seen a drop in sales since 2022, when rates began to rise from record lows reached during the pandemic.

Mortgage rates depend on several factors, including decisions made by the Federal Reserve regarding benchmark rates and investor expectations related to the economy and inflation. The primary benchmark is the yield on 10-year Treasury bonds, which on Thursday stood at 4.34%, down from 4.37% the previous day.

High mortgage rates are likely to continue to squeeze the market. Currently, according to new data, the index for home purchases fell by 0.8% in June compared to the previous month and by 2.8% from June of last year.

Rates are expected to remain above 6% this year. Forecasts from Realtor.com and Fannie Mae suggest a possible reduction in the average rate to 6.4% by the end of the year. However, this may not be sufficient to revive home sales.

The housing market currently remains stagnant, maintaining an ownership rate of approximately 65%, which is the lowest indicator since 2019.

Tags: USA/Economy