Mortgage Rates Hold Steady as Summer Market Stays Challenging

Mortgage rates barely budged this week, offering little relief for buyers navigating one of the toughest housing markets in years.

Freddie Mac reported that the average rate on a 30-year fixed mortgage settled at 6.74% for the week ending July 23, a marginal drop from 6.75% the week prior. The average 15-year fixed mortgage dipped to 5.87%, down from 5.92%.

While the shifts are small, the consistency provides some stability in an otherwise unpredictable housing environment. "Overall, the backdrop for the housing market is positive as the economy continues to perform well with solid employment and income growth," said Sam Khater, chief economist at Freddie Mac.

Mortgage activity reflects the mixed signals. Applications to purchase homes climbed 3% from last week, according to the Mortgage Bankers Association, but refinance activity dropped by the same margin. "We expect overall demand to ebb and flow as long as mortgage rates remain volatile due to the ongoing economic uncertainty," said Bob Broeksmit, MBA CEO and president.

The bigger challenge lies in home sales. Realtor.com now forecasts that existing home sales could fall to just 4 million transactions in 2025, down 1.5% from last year and marking another historic low. At the start of the year, analysts expected sales to rise slightly — but higher borrowing costs and limited affordability have kept many buyers on the sidelines.

For now, mortgage rates remain elevated, and while they have steadied in recent weeks, housing market activity shows few signs of a meaningful rebound.

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