Key Facts
• US mortgage rates fell for the third consecutive week, reaching 6.81%.
• The rate, reported by Freddie Mac, is the lowest since mid-May.
• Last week’s average rate was slightly higher at 6.84%.
• Homebuyers face challenges from high interest rates and rising property prices.
• Increased property listings have not offset declining purchasing power.
• Bankrate’s Chief Financial Analyst, Greg McBride, noted no strong reason for rate cuts.
• The Federal Open Market Committee (FOMC) is likely to maintain policy rates on June 18.
Summary
The average 30-year mortgage rate in the US has dropped to 6.81%, marking the third consecutive week of decline and the lowest level since mid-May, according to Freddie Mac. Despite this decrease, homebuyers continue to face significant challenges due to high interest rates and rising property prices, which have reduced purchasing power. While property listings have increased, transaction volumes remain under pressure. Greg McBride, Chief Financial Analyst at Bankrate, highlighted that economic conditions and inflation uncertainties provide no compelling reason for the Federal Reserve to lower rates. The FOMC is expected to keep policy rates unchanged in its June 18 announcement.
