Tue Aug 05 06:00:00 UTC 2025: Okay, here’s a summary and a rewritten news article based on the provided text:

**Summary:**

Mortgage rates have slightly decreased this week, offering minor relief to potential homebuyers. The 30-year fixed-rate mortgage averaged 6.72%, down slightly from 6.74% last week. However, rates remain elevated, continuing to weigh on the housing market, which has been in a slump since 2022. The Federal Reserve’s recent decision to hold interest rates steady and its indication that rate cuts are unlikely in the near future will likely keep mortgage rates elevated. While some forecasts predict a slight easing by year-end, home sales remain sluggish, and the homeownership rate is at its lowest level since 2019. Mortgage applications have also decreased, reflecting continued uncertainty among prospective buyers.

**News Article:**

**Mortgage Rates Dip Slightly, But Housing Market Still Sluggish**

**By [Your Name]**

WASHINGTON – U.S. mortgage rates saw a modest decrease this week, providing a sliver of hope for prospective homebuyers grappling with high prices and borrowing costs. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage dipped to 6.72% from 6.74% the previous week. The 15-year fixed-rate mortgage also saw a slight decrease, averaging 5.85%.

Despite this slight easing, elevated mortgage rates continue to suppress the housing market, which has been struggling since 2022, when rates began their ascent from pandemic-era lows.

The Federal Reserve’s recent decision to hold its key interest rate steady is expected to keep mortgage rates from dropping significantly in the near future. Fed Chair Jerome Powell has also signaled that a rate cut is unlikely in September due to persistent inflation concerns.

“If inflation expectations continue to be high, mortgage rates could also remain higher,” said Lisa Sturtevant, chief economist at Bright MLS.

While some economists are projecting a slight easing of mortgage rates to around 6.4% by the end of the year, the current environment has contributed to sluggish home sales and a declining homeownership rate. New data indicates that pending home sales fell in June, suggesting further softening in the market.

The U.S. homeownership rate currently sits around 65%, its lowest level since 2019. Mortgage applications also fell 3.8% last week, reflecting continued uncertainty among potential buyers regarding the economy and job market.

“There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions,” said Joel Kan, deputy chief economist at the Mortgage Bankers Association.

The housing market remains sensitive to fluctuations in Treasury yields and the overall economic outlook, making it difficult to predict when a significant recovery might occur.

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