Housing News

Mortgage Rates Fall to a Seven-Week Low

Mortgage rates eased this week, falling to their lowest level in seven weeks as homebuyer demand continued to edge higher.

The average rate on a 30-year, fixed-rate mortgage fell to 6.43% for the week ending July 2, according to Freddie Mac. That’s down from 6.49% a week earlier and below the 6.67% average recorded at this time last year.

“With rates at a seven-week low and purchase demand continuing to edge higher, it’s an encouraging sign as prospective homebuyers respond to modest improvements in affordability,” said Sam Khater, Freddie Mac’s chief economist, in a statement.

Lower borrowing costs compared with a year ago continue to improve affordability for many homebuyers.

A homebuyer purchasing a $400,000 home with 20% down would pay about $42 less per month than they would have paid at this time last year. At this week’s average rate of 6.43%, the monthly principal and interest payment comes to roughly $2,007, compared with about $2,049 when rates averaged 6.67% a year ago. Over 12 months, that’s about $504 in savings, or roughly $15,000 over the life of a 30-year fixed-rate loan.

Mortgage application activity was essentially unchanged from the previous week, according to the Mortgage Bankers Association’s weekly survey. However, applications to purchase a home increased 1% from the prior week and were 3% higher than the same week a year earlier. Applications to refinance existing mortgages slipped 1% week over week but remained 9% above year-ago levels.

“Purchase applications remain ahead of 2025’s pace and have exhibited year-over-year growth for almost three months, as prospective homebuyers are finding opportunities in markets with ample inventory and easing home-price growth,” said Joel Kan, the Mortgage Bankers Association's vice president and deputy chief economist, in a statement.