Overview
- Freddie Mac reported Thursday that the average 30-year fixed mortgage rate fell to about 6.47%, a five basis point decline from the prior week and the lowest level in roughly a month.
- Markets pushed rates down after news of a tentative ceasefire with Iran and signs the Strait of Hormuz could reopen, which reduced oil prices and eased 10-year Treasury yields.
- The Federal Reserve held its policy rate at the June 16–17 meeting but signaled that officials may raise rates later this year, a message that quickly pushed Treasury yields higher and limited further mortgage declines.
- Mortgage Bankers Association data show total applications fell 3.8% for the week ending June 12, with purchase applications down 3% weekly yet about 3% higher than a year ago and refinance activity down weekly but roughly 17% above last year.
- Short-term relief may not last because long-term mortgage pricing tracks investor expectations for inflation and the 10-year Treasury, so any renewed inflation or clearer Fed tightening could keep rates above 6% and keep many buyers and sellers on the sidelines.