U.S. Mortgage Rates Hit 2025 Low, but Homebuyer Response Remains Tepid

The 30-year fixed-rate mortgage dropped to 6.50%, marking its lowest level this year, according to Freddie Mac. Despite the decline, Redfin reports only a marginal increase in homebuyer activity, with the median monthly housing payment settling at $2,593—the lowest since January.

"Mortgage rates haven’t come down significantly enough to reignite broad demand," said Redfin agent Mariah O’Keefe. Buyers remain cautious, holding out for rates to dip below 6%.

Market dynamics are caught between anticipation of Fed rate cuts and persistent affordability challenges. Redfin economists note that a 25 bps cut at the upcoming FOMC meeting is already priced in, while a strong jobs report could push rates higher. Home prices, meanwhile, hover NEAR record highs at $410,800.