Rates plummeted with the 30-year fixed rate mortgage crashing down 25 basis points to 5.30%. The 15-year mortgage followed suit, dropping 18 basis points to 4.60%.
From a broad view, rates peaked in June and have been coming down from that high ever since. As a result, borrowers have been enjoying “the biggest 4 weeks of gains since the start of the pandemic.” Meanwhile, home affordability may continue to be an issue as real income declined 0.3% when accounting for inflation. This is particularly a concern for millennials who are spending an average 47% of their gross monthly income on housing; experts don’t recommend spending more than 30% of your income on housing expenses. On the bright side, in addition to interest rates dropping, year-over-year home price growth also fell. In June, this index dropped from 19.3 to 17.3%, a 66% stronger deceleration than in May.