Mortgage Rates Drop to 6.76%, Boosting Home Buyers

Mortgage rates in the U.S. have declined for a second consecutive week, with the average 30-year fixed-rate mortgage falling to around 6.76%, the lowest in several weeks, according to Freddie Mac and other trackers. This modest drop, coupled with a rise in housing inventory and a slowdown in home price growth, is providing some relief to prospective buyers, though rates remain elevated compared to earlier in the year. The recent decrease in rates is attributed to calming financial markets and falling Treasury yields after volatility spurred by tariff news, but the broader economic outlook remains uncertain. Despite these lower rates, overall homebuying activity has remained lackluster this spring, with rising listings but slower demand and more homes lingering on the market. Sellers are increasingly willing to consider price cuts as the market adjusts to these conditions. The direction of mortgage rates moving forward will likely depend on future economic developments, especially regarding inflation and trade policy.