Mortgage Rates Fell. The 6.5% Trap Didn’t.
U.S. mortgage rates eased from a nine-month high this week, giving homebuyers a small break but leaving borrowing costs near the level that has stalled much of the housing market. Freddie Mac said the average rate on a 30-year fixed-rate mortgage — a home loan whose interest rate stays the same for 30 years — fell to 6.48% as of June 4 from 6.53% a week earlier. The move matters because the summer buying season is under way, and even small changes in rates can shift monthly budgets. Freddie Mac Chief Economist Sam Khater said affordability was only “marginally improving,” with mortgage rates still in the mid-6% range, though income growth has been running ahead of home-price growth. The same loan averaged 6.85% a year earlier.