US Mortgage Rates Fall Fourth Week to Lowest Since May

Mortgage rates in the U.S. have fallen for the fourth consecutive week, with the average rate for a 30-year fixed loan dropping to 6.77%, the lowest since early May. The 15-year fixed mortgage rate also declined, reaching 5.89%, offering some relief to homebuyers and homeowners amid a challenging affordability landscape. Experts attribute the recent rate declines to easing Treasury yields and growing optimism that the Federal Reserve may begin cutting rates later this year, possibly as early as September. Despite the lower rates and increased inventory providing buyers with more options, affordability remains a significant hurdle in many metro areas, with only a few markets where median income households can afford homes without exceeding 30% of their income. The Federal Reserve's policy stance is under debate, with some officials advocating for a rate cut soon, while others suggest waiting until the fall, reflecting a split within the Fed on the timing of monetary easing. This evolving economic context is prompting many to explore refinancing and homebuying opportunities while rates remain under key thresholds.