M
ortgage rates dipped slightly this week, but the drop may not be enough to boost buyer enthusiasm as affordability concerns persist. Key takeaways include:

    New listings are up, but at a slower pace than usual for this time of year, with Redfin analysis showing the biggest slowdown in late May in over a decade.

    The 30-year fixed-rate mortgage averaged 6.85% as of June 5, down from 6.89% the previous week, according to Freddie Mac. However, rates remain higher than last year's average and are not expected to significantly impact home sales.

    Mortgage applications have slowed in recent weeks, with a 3.9% drop in overall applications for the week ending May 30, according to the Mortgage Bankers Association.

    The number of mortgages secured has declined sharply, with only 1.4 million mortgages issued in the first quarter of 2025, down from 4.2 million in early 2021, according to an ATTOM report.

    New home listings are declining year-over-year in 11 of the country's 50 most populous metro areas, with significant drops in San Jose and four Florida cities: Orlando, Fort Lauderdale, Tampa, and West Palm Beach.

    Economic uncertainty and high home prices continue to deter buyers, with mortgage rates being seen as a "magic bullet" that could energize sales but may not be enough on its own.