According to the latest report from mortgage buyer Freddie Mac, 30-year mortgage rates fell to 6.77% from 6.81% last week as the market continues to undergo one of its largest adjustments.

For Sam Khater, chief economist at Freddie Mac, "borrowers should feel comfortable with the stability of mortgage rates, which have only fluctuated within a narrow 15-basis-point range since mid-April,” he said.

On the other hand, the 15-year fixed mortgage also fell to 5.89% from 5.96% last week. “Although recent data shows that home sales remain low, the resulting available inventory offers buyers a wider range of options to consider when entering the market,” Khater said.

While lower mortgage rates are a relief for buyers amid a tight market, However, the affordability crisis is ultimately scaring away prospective buyers, as according to various industry reports, currently, of the 50 metropolitan areas, only in three of them can households earning an average income purchase a home that does not exceed 30% of their annual income.

In this regard, Danielle Hale, chief economist at Realtor.com, mentioned that “earnings have increased, but homebuying costs have risen faster, meaning that meeting affordability guidelines can be challenging, if not impossible, in many real estate markets across the country.”

Realtor reports detail that the average annual income in those three cities is between $72,935 and $79,869 respectively, and noted that more than 40% of that income would be necessary for an average household to be able to purchase an “average-priced” home.