Experts maintain that while rates may tick down to the mid-6’s by end of year, in the meantime they’ll remain at elevated levels at least through the season.
According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.74% a decrease of 1 basis point from last week’s average of 6.75%.
“This week, the 30-year fixed-rate mortgage essentially remained flat at 6.74%,” said Sam Khater, Freddie Mac’s chief economist. “Overall, the backdrop for the housing market is positive as the economy continues to perform well with solid employment and income growth.”
Realtor.com Economist Jiayi Xu commented, “The persistent risk of tariff-driven inflation, combined with a rising U.S. fiscal debt—expected to grow further following the passage of the Big Beautiful Bill Act—has helped establish a relatively high floor for interest rates, at least for now.”
Xu said looking ahead, Realtor.com predicts that mortgage rates are likely to stay elevated throughout the remainder of the year but gradually ease to around 6.4% by year-end, as anticipated slowing growth and subdued inflationary pressures help bring rates lower.
“High mortgage rates and elevated home prices have kept home sales near yearly lows—a trend that’s perhaps unsurprising given that, in nearly all major U.S. metros, renting a starter home remains the more budget-friendly option,” Xu added. “While the long-term financial benefits of homeownership are still well-recognized, many prospective buyers are exercising patience in the face of persistent affordability challenges.”
This week’s numbers:
- The 30-year FRM averaged 6.74% as of July 24, 2025, down slightly from last week when it averaged 6.75%. A year ago at this time, the 30-year FRM averaged 6.78%.
- The 15-year FRM averaged 5.87%, down from last week when it averaged 5.92%. A year ago at this time, the 15-year FRM averaged 6.07%.
To view the full report, click here.
