While rates were on the rise at the beginning of the year, the 30-year fixed-rate mortgage averaged 5.30% in the week ending July 7. This was down from 5.70% the week before. Economic concerns have pushed them lower in recent weeks.

Rates are still higher than they have been compared to last year, but there is a silver lining for homebuyers: more homes are hitting the market.
The drop in mortgage rates in the week ending July 7 follows a recent drop in the 10-year Treasury yield to below 2.8% in the first week of July. It is important to remember that the Federal Reserve does not set interest rates borrowers pay on mortgages, but its actions can influence them.