Freddie Mac Mortgage Rates—July 3, 2025
What happened to mortgage rates this week
The Freddie Mac 30-year mortgage rate fell to 6.67% this week, a 10-basis-point drop and the fifth consecutive week of decline. The broader economic backdrop remains mixed, with persistent inflation pressures, a recent uptick in job openings, and a modest slowdown in hiring momentum. Rates have responded to shifting expectations around future Federal Reserve policy in the second half of the year, as markets digest mixed signals on inflation and growth.
Generally, elevated mortgage rates and wavering consumer confidence are weighing on home sales, with new-home sales down 6.3% year over year in May and existing-home sales slipping 0.7% from a year ago. The slowdown in sales is gradually leading to higher inventory levels, creating the early stages of a more buyer-friendly housing market. However, this shift is expected to unfold slowly as uncertainty persists.
What it means for the housing market
Looking ahead, the upcoming tariff deadline, along with the release of the CPI report, will bring added clarity to the policy and inflation outlook. Any renewed volatility in trade policy could significantly affect market conditions during the second half of the year. For now, elevated borrowing costs are still limiting buyer activity, and homes are spending more time on the market, supporting the ongoing buildup of inventory and modestly shifting leverage back toward buyers.
