Sun Jul 06 07:30:00 UTC 2025: **Summary:**

US mortgage rates have declined for the fifth consecutive week, reaching their lowest point since early April. This offers a glimmer of hope for potential homebuyers struggling with high home prices and overall affordability issues that have plagued the housing market since 2022. While sales remain sluggish, recent data suggests a potential pick-up in the coming months, fueled by the rate decrease and a rise in pending home sales. Experts predict rates to remain relatively stable, fluctuating between 6% and 7% for the remainder of the year. The decline in rates has already spurred an increase in mortgage applications.

**News Article:**

**Mortgage Rates Plunge for Fifth Straight Week, Offering Hope to Homebuyers**

**WASHINGTON D.C.** – In a welcome sign for prospective homebuyers, the average rate on a 30-year U.S. mortgage has dropped for the fifth consecutive week, hitting its lowest level since early April. Freddie Mac reported the rate fell to 6.67% from 6.77% last week, a considerable dip from the 6.95% average a year ago. This decline provides a potential boost to a housing market struggling with affordability concerns.

The news comes as the housing market grapples with a sales slump that began in 2022, driven by climbing mortgage rates. Last year saw U.S. home sales plummet to their lowest level in nearly 30 years.

“This is a positive development for buyers who have been priced out of the market due to high rates,” stated a real estate analyst. “While home prices remain elevated, this dip offers a slight reprieve.”

The drop in borrowing costs also extends to 15-year fixed-rate mortgages, popular for refinancing, which fell to 5.80% from 5.89%.

While the market has been sluggish, recent indicators suggest a potential turnaround. The National Association of Realtors reported a 1.8% increase in pending home sales in May, and a 1.1% rise compared to May of last year.

Economists predict relatively stable rates in the coming months, forecasting fluctuations between 6% and 7% for the remainder of the year. The recent decline has already impacted consumer behavior, with mortgage applications rising 2.7% last week, according to the Mortgage Bankers Association.

This data points to a potential shift in the market dynamic, though the long-term impact remains to be seen.

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