A pair of new data reports showed a slight decline in mortgage rates and a slight uptick in homebuyer affordability.
The 30-year fixed-rate mortgage averaged 6.72% as of July 31, according to the Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC). This level is down slightly from last week when it averaged 6.74%. A year ago at this time, it averaged 6.73%.
The 15-year fixed-rate mortgage averaged 5.85%, down from last week when it averaged 5.87%. A year ago at this time, it averaged 5.99%.
“The 30-year fixed-rate mortgage showed little movement, remaining within the same narrow range for the fourth consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “Continued economic growth, along with moderating house prices and rising inventory, bodes well for buyers and sellers alike.”
Separately, the Mortgage Bankers Association (MBA) reported the national median payment applied for by purchase applicants dropped to $2,172 from $2,211 in May. On a year-over-year measurement, it was up by $5, equal to a 0.2% increase.
The national median mortgage payment for conventional loan applicants was $2,205, down from $2,235 in May and up from $2,180 in June 2024. The national median mortgage payment for FHA loan applicants was $1,881 in June, down from $1,927 in May and down from $1,907 in June 2024.
“Affordability conditions improved in June, a positive sign for prospective homebuyers looking to take advantage of slightly lower mortgage rates and moderating home prices,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America. “The median purchase application amount decreased to $324,800, and we expect that home-price growth will continue to stabilize as more inventory comes onto the market in many parts of the country.”
