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What Are Mortgage Rates Doing Now?

• The 30-year fixed mortgage averaged 6.67% as of July 3, 2025—its lowest level since April, and a five-week decline from 6.77% the prior week freddiemac.com+4apnews.com+4themortgagereports.com+4.

• The 15-year fixed rate also eased, now around 5.80%, down from 5.89% apnews.com+1themortgagereports.com+1.

• Bankrate reports a current average of 6.68% for 30-year fixed and 6.00% on a 15-year en.wikipedia.org+15bankrate.com+15themortgagereports.com+15.

🤔 Why Rates Are Still High

1. Federal Reserve Policy
   Despite strong job growth—147,000 added in June and unemployment ticking down—Federal Reserve Chair Powell left no hint of imminent rate cuts investopedia.com+6businessinsider.com+6marketwatch.com+6.
   The Fed’s benchmark funds rate now sits around 4.33%, and tied mortgage rates remain elevated nypost.com+3apnews.com+3marketwatch.com+3.

2. Bond Market Dynamics
   Mortgage rates are influenced not just by Fed policy, but by 10-year Treasury yields. Currently hovering around 4.25%–4.33%, those yields have kept mortgage rates anchored in the high 6% range.

3. Structural Affordability Challenges
   Even if rates dip slightly, housing affordability will remain tight due to:

   • Limited inventory and persistent home shortages (~4 million homes short) marketwatch.com+5freddiemac.com+5themortgagereports.com+5

   • Rising mortgage insurance and insurance costs bankrate.com+4ycharts.com+4bankofamerica.com+4

🏠 Market Impact & Forecasts

• Buyers are starting to re-enter the market: pending home sales rose 1.8% in May as rates dipped apnews.com+1wsj.com+1.

• Recent weeks have seen more homes on the market, and sellers are offering rate buydowns to compensate for high rates marketwatch.com+1wsj.com+1.

• Forecasts for late 2025 into 2026 expect rates to stay in the 6.4%–6.8% range, according to Fannie Mae, NAR, and Wells Fargo finance.yahoo.com+7themortgagereports.com+7apnews.com+7.

• J.P. Morgan predicts rates will remain above 6.5% through 2025 forbes.com.

✅ What This Means for You

• Rates in the high 6s are now the “new normal”. They’ve softened a bit but won’t fall back to sub-4% anytime soon.

• For buyers: Dropping rates and more inventory mean improved negotiating power. But affordability still requires careful planning.

  • Getting pre-approved now locks your payment even if rates rise before closing.

• For homeowners with high mortgage rates (>6.5%): Most don’t qualify to refinance yet unless rates dip meaningfully—and that’s uncertain.

🔑 Bottom Line

Yes, mortgage rates have eased—but they’re still strong by historical standards. If you're ready to buy, now may be the time to act: rates aren’t likely to plummet, and conditions favor serious buyers. Just be prepared with a smart budget and a pre-approval in hand.📈