Mortgage rates are falling again, but the real estate market remains stagnant

Mortgage rates fell again this week, but remain too high to trigger any significant movement in the housing market as the affordability crisis remains in place.

Freddie Mac’s latest prime mortgage market study, released Thursday, showed that the average benchmark rate Fixed mortgage for 30 years it fell to 6.35% this week from 6.46% last week. The average rate on a 30-year loan was 7.18% a year ago.

A home for sale in the Capitol Hill neighborhood of Washington, DC on July 30, 2024. (Photo: Tierney L. Cross/Bloomberg via Getty Images/Getty Images)

“Mortgage rates fell again this week on expectations of a Fed rate cut,” said Sam Khater, Freddie Mac’s chief economist. “Rates are expected to continue their decline, and while potential homebuyers are watching closely, a rebound in buying activity remains elusive until we see further declines.”

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The average 15-year fixed mortgage rate fell to 5.51% from 5.62% last week. A year ago, the 15-year fixed rate averaged 6.55%.