Another factor is inflation, which remains persistently higher than the Fed’s target of 2 percent. The Labor Department reported that inflation had edged up to 2.4 percent in May, an uptick from April, but still tame enough to relieve some of the pressure on mortgage rates.

Current mortgage rates are down and lower than they were seven days ago and in early 2025, when the average 30-year fixed-rate mortgage reached above 7%. Even though Federal Reserve policy doesn’t directly impact today’s mortgage rates, they have been easing since the Fed began cutting rates in late 2024.

After reaching a peak of 7.04% in January 2025, mortgage rates retreated to the mid-6% range in March but then reversed course and have remained stuck between 6.75% and 6.9% since early May. The average 30-year fixed mortgage rate was 6.