Mortgage Rates Drop to Lowest Since April Boosting Buyer Power

Mortgage rates in the United States have recently exhibited slight declines, with the 30-year fixed-rate mortgage dropping to 6.63%, its lowest level since April 2025, down from 6.72% the previous week, and the 15-year fixed-rate mortgage falling to 5.75%. This decrease has increased homebuyers' purchasing power, allowing buyers with a $3,000 monthly budget to afford homes priced about $20,000 higher than during the May peak when rates reached 7.08%. Despite these slight improvements, mortgage rates remain historically high compared to pre-2022 levels, with many potential buyers indicating they would only consider purchasing if rates fall below 5%. Stability has characterized recent rate movements, but upcoming economic indicators, including the Consumer Price Index and Federal Reserve communications, could introduce volatility. Meanwhile, in Canada, mortgage rates have held steady due to economic uncertainty and inflation, with buyers increasingly negotiating home prices below asking as rates offer little relief. Overall, while modest rate declines have marginally eased affordability pressures for American buyers, significant rate drops are still needed to substantially stimulate the housing market.