Mortgage Rates Decline, Continue to Hold in Steady Territory

As rates dip a bit more this week, economists point to a several-months-long stretch of little fluctuation and a short-term wait-and-see approach to interest rates by the Fed as an overall combined positive for borrowers as the summer market gets underway.

According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.77% down 4 basis points from last week’s average of 6.81%.

“Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April,” said Sam Khater, Freddie Mac’s chief economist. “Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market.”

Realtor.com Senior Economic Research Analyst, Hannah Jones, commented, “In his Tuesday remarks, (Federal Reserve Chair Jerome) Powell reiterated the FOMC’s ‘wait-and-see’ stance on interest rate cuts, signaling caution amid mixed economic signals. While recent employment and inflation figures suggest a gradual cooling, consistent with the Fed’s goals, newly imposed tariffs have introduced fresh upside risks to inflation.”

Jones also pointed to the Consumer Confidence Index reflecting a softening in consumer sentiment, with households expressing concern over both current business and labor market conditions, as well as concern over the economic outlook. “Additionally, plans to purchase a home fell, suggesting that homebuyers may be hesitant to make a large financial commitment,” she said, noting the housing market is “stuck in a bit of a rut,” and continues to suffer from high home prices and elevated mortgage rates.

On the bright side, Jones offered, “Climbing for-sale inventory in much of the country could help soften upward price pressure and usher in a more friendly housing market for buyers.”

This week’s numbers

The 30-year FRM averaged 6.77% as of June 26, 2025, down from last week when it averaged 6.81%. A year ago at this time, the 30-year FRM averaged 6.86%.
The 15-year FRM averaged 5.89%, down from last week when it averaged 5.96%. A year ago at this time, the 15-year FRM averaged 6.16%.

To view the full Freddie Mac report, click here.