Mortgage Rates Dip to 6.72% While Buyers Hold Back

Mortgage rates in the US fell for a second consecutive week, easing to 6.72% for a 30-year fixed mortgage from 6.74%, Freddie Mac reported. Despite the slight decline, rates stubbornly hover near 7%, keeping borrowing costs elevated as home prices continue to rise across much of the country.

Resale home contract signings slid in June, with the National Association of Realtors reporting both annual and monthly declines. “The spring buying season never took off, with fewer new listings and sellers pulling homes off the market rather than negotiate,” said Jake Krimmel of Realtor.com, encapsulating the broader market unease fueled by economic uncertainty and shifting trade policies.

• 30-year mortgage rates narrow around 6.7%, just below 7%
• Resale contracts fall amid thin listings and buyer caution
• High financing costs and home-price gains dampen affordability

• 30-year fixed rates down to 6.72% from 6.74%
• June NAR contract index declines year-over-year and month-over-month
• Consumer sentiment rattled by trade and economic policy shifts

• Rates under 6.5% may be needed to jumpstart homebuying
• Fed’s September rate guidance could influence mortgage pricing
• Inventory constraints continue to uphold home values despite cooling demand

• Even a modest two-week dip in 30-year mortgage rates signals that borrowing costs may have peaked, stoking cautious optimism among potential homebuyers and laying the groundwork for pent-up demand to release if further declines materialize.
• If mortgage rates fall below the 6.5% threshold, sidelined buyers could re-enter the market, prompting a rebound in contract signings and supporting liquidity across the resale segment.
• Home values remain supported by ongoing inventory constraints, as sellers pull back rather than discount, signaling underlying strength and offering homeowners confidence that price declines will be limited—even through softer sales activity.
• The Federal Reserve has adopted a more “wait and see” posture rather than rushing to raise borrowing costs further, giving markets breathing room; positive surprises in Fed guidance or lower inflation prints could push rates further down and catalyze a late-year rally in housing activity.
• For professionals: Ambitious agents and lenders should focus on pipeline management and readying buyers for rapid execution if rates fall. Proactive outreach and education on financing options (e.g., buydowns, ARMs, lender concessions) can help clients take advantage of the next rate dip.
• Supply-chain and policy-driven disruptions could abate, adding listing volume as confidence returns or as market conditions stabilize, further enhancing choice and reducing buyer fatigue.

• Rates remain stubbornly elevated near 7%, and modest week-to-week declines have yet to meaningfully improve affordability—buyers and sellers alike remain on the sidelines, resulting in a stalled market and falling contract signings.
• June’s year-over-year and month-over-month drop in contract activity, according to NAR, suggests that even with slightly cheaper financing, buyers are deterred by high home prices, thin inventory, and lingering economic/policy uncertainty.
• Spring’s failure to deliver a surge in new listings may worsen seasonal slowdowns: sellers may continue holding properties off the market, anticipating better rates, which reinforces inventory gridlock and keeps upward pressure on prices, further squeezing affordability.
• Trade policy disruptions and fluctuating consumer sentiment add to the unease; barring a significant downward move in rates, buyers may delay decisions, risking a drawn-out period of low activity and rising frustration across the value chain.
• The Fed’s cautious stance—with no immediate plan for rate cuts and dissent within the FOMC—means mortgage pricing may not materially improve until fall or beyond, dragging out the recovery timeline.
• Actionable for sales teams and mortgage professionals: Double down on homeowner outreach with creative marketing, but maintain lean pipelines and conservative underwriting. Prepare clients for persistent rate volatility and counsel patience or alternative strategies (e.g., renting, house hacking) until clearer signals from the Fed and macro data emerge.

The Federal Reserve held its benchmark interest rate steady this week, resisting calls from President Trump for immediate cuts. Two Fed governors dissented, yet Chair Jerome Powell maintained a cautious stance on rate reductions, highlighting that inflation still poses a potential risk to the economic outlook.

Looking forward, market participants will eye the Fed’s post-meeting statements and September policy decision for clues on future rate moves. With consumer spending under pressure and supply-side constraints limiting listings, any relief in mortgage rates will be critical to revitalizing the U.S. housing market.