The 30-year fixed-rate mortgage fell by 0.06% week-over-week to 6.50%, according to Freddie Mac, marking a year-to-date low and the lowest rate since October 2024. However, lower mortgage rates have only resulted in a “trickle” of new homebuyers, said Redfin in a report on Thursday, adding that the median U.S. monthly housing payment of $2,593 is now at its lowest level since January.
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“Mortgage rates haven’t come down significantly enough to bring back a flood of buyers,” said Redfin Premier agent Mariah O’Keefe. “House hunters are on rate watch, hoping they’ll drop below 6%.”
Housing Market Stuck Between Rate Cuts and Price Pressures
Redfin economists have cautioned that mortgage rates have already priced in a 25 bps rate cut at the September 16-17 Federal Open Market Committee (FOMC) meeting. In addition, Friday’s jobs report, if stronger than expected, could lead to higher mortgage rates.
At the same time, housing affordability is still a key issue as the median home sale price of $410,800 remains near all-time highs.
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