In the latest report presented by the mortgage buyer Freddie Mac, 30-year mortgage rates in the United States fell to 6.67% from 6.77% last week.

In this regard, Sam Khater, chief economist at Freddie Mac, commented that “this is the largest weekly drop since the beginning of March,” he said. In a tight market, the data represents positive news for buyers who have been holding back not only because of high mortgage rates but also because of a lack of inventory and an affordability crisis. Meanwhile, the 15-year fixed mortgage rate fell to 5.8% from 5.89% last week, a healthy figure compared to 6.25% a year ago. “The decline in mortgage rates is encouraging, and while overall affordability challenges remain, we are seeing more sellers entering the market, giving prospective buyers a head start,” Khater noted in the report.

Since inflation soared to 9.1% in 2022, the housing market has been impacted primarily by home prices reaching historic highs, with a report released by Redfin in late June showing homes in the US hitting a record high of $396,500.