New York, June 4, 2026, 18:02 EDT
- The 30-year fixed mortgage rate slipped to 6.48%, Freddie Mac said. That’s down from 6.53% the week before.
- Mortgage applications dropped 2.5% for the week ended May 29. Demand for purchase loans fell 3%.
- Major housing-finance trackers are forecasting slow relief, and say a quick return to cheap money isn’t on the table.
U.S. mortgage rates dropped from a nine-month high this week. The dip hasn’t sparked much buyer activity, though, so the spring market has slightly lower rates but demand remains slow.
Mortgage rates dipped again this week, Freddie Mac said Thursday. The average 30-year fixed mortgage is now at 6.48%, down from 6.53%. The 15-year fixed rate slid to 5.79% after hitting 5.87% last week. “With mortgage rates in the mid-6% range and income growth outpacing home price growth, housing affordability is marginally improving,” said Sam Khater, chief economist at Freddie Mac. Freddie Mac
Mortgage costs have edged down, but that hasn’t moved the needle for most buyers. The Mortgage Bankers Association reported its seasonally adjusted index for total mortgage applications dropped 2.5% for the week ending May 29. Purchase applications slid 3%, and refis dropped 2%. This was as the MBA’s 30-year conforming rate dipped to 6.57% from 6.65%.
“The retreat in rates, however, did not lead to an increase in mortgage applications,” Joel Kan, MBA’s vice president and deputy chief economist, said. Kan noted that purchase applications are still running ahead of last year but hit their lowest weekly level since April. Refinancing also dropped, with activity at the softest point since last June. Fortune
Bonds and oil are adding pressure, not just housing. Mortgage rates usually track the 10-year Treasury yield, which lenders watch for long-term loan pricing. That yield was about 4.47% at midday Thursday, up from 3.97% in late February before the Iran war, according to AP. “This conflict is currently the main driver of still-high mortgage rates,” said Joel Berner, senior economist at Realtor.com. AP News
Fed minutes kept the hold on rates, leaving the federal funds rate at 3.50% to 3.75% at the April 28-29 meeting and setting the next meeting for June 16-17. Policymakers said inflation was still high, pointing to global energy prices. The central bank’s latest meeting notes are .
Fannie Mae’s May housing outlook puts the average 30-year fixed mortgage at 6.3% in 2026 and 6.2% by 2027. Other market forecasts cited by NerdWallet have MBA looking for rates to close out this year near 6.5%. That’s a drop from last year’s top levels, but still not enough for a new refinancing boom like during the pandemic.
Median list prices dropped 2.4% in May from a year ago to $429,500, per Realtor.com. That’s the seventh straight annual fall and the biggest since the site started tracking in 2017. Pending listings climbed 4.3% over last year, hinting that lower prices are drawing in buyers faster than lenders can keep up.
Getting a rate under 6% is tough now. CBS News pointed to three main ways: compare offers from more than one lender, look at adjustable-rate mortgages with lower initial rates that can reset, or pay upfront for discount points at closing to bring the rate down.
Still, there are trade-offs. Adjustable-rate loans may get pricier once the fixed term ends, and paying points makes sense only if the borrower hangs on to the home long enough to make back the upfront cost in lower payments. Mortgage rates could start rising again if oil prices spike, inflation comes in stronger, or the bond market sells off, possibly cutting into buyers’ chances for lower rates.
Right now, the market is in a narrow zone. Rates have eased off their top, listings are ticking up, and prices are slipping in spots. A lot of buyers are still holding out for a bigger move.
