The average mortgage rate ticked higher again this week

• The average rate on a 30-year fixed-rate mortgage rose to 6.49% this week, up slightly from 6.47% last week, but below the 6.77% average a year ago.

• Mortgage rates have remained in a narrow range around 6.5% for the past six weeks, providing borrowers with more certainty even as affordability challenges persist.

• While rates are lower than a year ago, elevated borrowing costs continue to weigh on home affordability and are likely to keep the housing market moving at a measured pace.

The average rate on a 30-year fixed-rate mortgage increased slightly to 6.49% this week, according to Freddie Mac, remaining near the level where borrowing costs have hovered for more than a month.

The rate edged up from 6.47% last week but remains below the 6.77% average recorded during the same week a year ago. Freddie Mac also reported the average 15-year fixed-rate mortgage rose to 5.84%, compared with 5.81% a week earlier.

“Mortgage rates have remained essentially unchanged for the past six weeks, continuing to stabilize after earlier volatility,” Freddie Mac said in its weekly Primary Mortgage Market Survey.

Good and bad

The steady rate environment offers prospective buyers greater certainty as they plan home purchases. However, borrowing costs remain well above the historic lows seen during the pandemic, limiting purchasing power for many households.

At current rates, monthly mortgage payments remain significantly higher than they would be at rates closer to 5%, making affordability a key challenge — especially for first-time buyers already facing elevated home prices and limited inventory.

For the broader housing market, the stability in mortgage rates could help sustain modest buyer demand during the summer selling season. Buyers who delayed purchases while waiting for rates to fall may become more willing to enter the market if borrowing costs continue to hold near current levels.

However, economists caution that a meaningful rebound in home sales is unlikely without either lower mortgage rates or increased housing supply. While rates are down modestly from a year ago, they remain high enough to discourage many existing homeowners from selling because they are locked into much lower mortgage rates.

As a result, the housing market is expected to continue experiencing gradual improvement rather than a sharp acceleration, with stable mortgage rates providing a more predictable environment for both buyers and sellers, while affordability remains the industry’s biggest headwind.