Mortgage Rates Take Biggest Dive in Months—Perfect Timing for Summer Buyers

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News Flash

Mortgage Rates Keep Moving Lower

Good news for your buyers—mortgage rates just experienced their largest weekly drop in months. The average 30-year fixed rate has tumbled to between 6.62% and 6.75% in late June.

This marks the fourth straight week of decreases, bringing rates to their lowest point since early April.

Not to be outdone, the 15-year fixed rate also dropped, landing between 5.6% and 5.92%.

For context, industry experts consider the competitive range for a 30-year fixed loan to be between 6% and 8% right now. This downturn might be just what buyers need to finally come to the table.

Commercial Market Finally Seeing Some Light (For Some)

A cautious optimism is spreading through commercial real estate as we enter the second half of 2025. After months of uncertainty, many professionals now anticipate market activity to remain stable—or even improve—during the coming months.

But not everyone's invited to the party.

The office sector continues its split results. Class A "trophy" properties in prime locations are still attracting tenants. Meanwhile, Class B and C spaces can't seem to catch a break, with vacancy signs becoming permanent fixtures.

Industrial real estate, however, is thriving. The upswing in U.S. manufacturing has created sustained demand for warehouse, distribution, and manufacturing facilities.

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More You Should Know

• REITs Prove Stable: Dream Residential REIT and Flagship Communities REIT continue their monthly distributions, demonstrating the stability of REITs amidst broader real estate market uncertainty. [Source]

• Builder Confidence Plummets in June: Home builder confidence plummeted to 32 in June, a near-recession low, as labor shortages and steel/aluminum tariffs are expected to significantly raise construction costs for contractors. [Source]

• Foreclosures Rise Annually in May: U.S. foreclosure filings in May 2025 saw a 1% monthly decrease but a 9% year-over-year increase, with completed foreclosures jumping 34% annually. [Source]

• AI Powers Property Management Growth: The U.S. property management market is set to reach $134.2 billion in 2025, driven by a surge in third-party management adoption and the transformative integration of AI for enhanced operations like data management and tenant communication. [Source]

• LIHTC Boosts Affordable Housing: The Senate Finance Committee proposes a $15.7 billion expansion of the Low-Income Housing Tax Credit (LIHTC) program, aiming to finance 1.22 million new affordable rental homes by increasing allocations and reducing the financed-by test. [Source]

• Zillow Predicts Home Value Drop: Zillow forecasts a 1.4% decline in home values for 2025, primarily due to an increase in housing inventory, which is expected to give buyers more leverage despite ongoing high mortgage rates. [Source]

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