Housing News
Mortgage Rates Continue to Tick Down, Offering Homebuyers Some Relief
July 3, 2025
For the fifth week in a row, mortgage interest rates continued to come down.
Mortgage rates averaged 6.67% for 30-year, fixed-rate loans in the week ending July 3, according to Freddie Mac data. This was the lowest mortgage rates have been since April.
Rates were down from an average 6.77% last week and 6.95% this time last year.
“This is the largest weekly decline since early March,” Freddie Mac Chief Economist Sam Khater said in a statement.
Even small declines in rates can save homebuyers and homeowners money each month in their mortgage payments.
For example, homeowners with a $300,000 loan could save $56 a month with rates falling from 6.95% to 6.77%. That adds up to $672 a year or $20,160 over the life of a 30-year, fixed-rate mortgage.
Lower rates have resulted in more people applying for mortgages to buy a home or refinance their existing loans. In the week ending June 27, applications were up 2.7% from the prior week, according to the Mortgage Bankers Association.
Refinance applications rose 7% from the previous week and shot up 40% year-over-year, according to the association.
“Declining mortgage rates are encouraging,” Khater said. “And while overall affordability challenges remain, we are seeing more sellers enter the market giving prospective buyers an advantage.”
However, lower rates haven’t resulted in a surge of homebuyers browsing listings and attending open houses.
“The kick-off to summer usually means a slowdown in home shopping as some individuals and families are busier with vacations and traveling,” said Bright MLS Chief Economist Lisa Sturtevant in a statement. The multiple listing service covers the mid-Atlantic region.
“In addition, affordability is still a challenge,” said Sturtevant. “Some buyers are waiting both for rates and prices to come down before they get into the market.”