The average rate on a 30-year mortgage in the U.S. decreased to 6.74%, and the 15-year rate dropped to 5.87%. Despite some easing in rates, home prices remain record-high, creating challenges for potential buyers. The housing market has been sluggish, with home sales at their lowest levels in nearly 30 years. Elevated mortgage rates deter homeowners from selling, while rising prices render homeownership unattainable for many. Economic factors, including inflation risks and fiscal debt, contribute to maintaining high interest rates.
The average rate on a 30-year U.S. mortgage eased this week, offering little relief for prospective homebuyers facing record-high home prices.
Elevated mortgage rates have been weighing on the U.S. housing market, which has been in a sales slump going back to 2022, when rates started to climb.
The persistent risk of tariff-driven inflation, combined with a rising U.S. fiscal debt - expected to grow further following the passage of the Big Beautiful Bill Act - has helped establish a relatively high floor for interest rates.
While there are more homes on the market than a year ago, rising home prices and stubbornly high mortgage rates have made homeownership financially untenable for many Americans.
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