Mortgage rates dropped again, showing a decline for a fifth consecutive week.
The average 30-year fixed mortgage rate was 6.67% through Wednesday, down from 6.77% a week earlier, according to Freddie Mac data. Meanwhile, the average 15-year mortgage rate was 5.80%, down from 5.89% last week.
“Declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market, giving prospective buyers an advantage,” said Sam Khater, Freddie Mac’s chief economist.
Read more: When will mortgage rates go back to 5%?
The 10-year Treasury yield, which mortgage rates closely follow, also continued lower this week as many investors monitored whether Congress would pass President Trump’s big spending bill.
Though the Federal Reserve is not directly in control of mortgage rates, the federal funds rate is highly influential over the direction of interest rates for homes on the market. The Fed has not cut rates in 2025 and is not expected to later this month, its last meeting before Labor Day.
The steady decline in mortgage rates over the last five weeks has led more people to seek out a mortgage. According to a weekly Mortgage Bankers Association survey, mortgage applications increased 2.7% since last week.
Read more: How the Fed rate decision affects mortgage rates
Pending home sales have also seen a slight uptick, according to the National Association of Realtors. In May, pending home sales increased 1.8% over the previous month.
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