Mortgage rates barely budged this week as more listings flood the market

Mortgage rates this week have held steady for the most part. Rates for 30-year mortgages average 6.78% as of July 25, Freddie Mac reported. This is up only slightly from last week's 6.77%. Last year, rates were in a similar place, averaging 6.81%.

"Mortgage rates essentially remained flat from last week but have decreased nearly half a percent from their peak earlier this year," Freddie Mac Chief Economist Sam Khater said. "Despite these lower rates, buyers continue to pause, as reflected in tumbling new and existing home sales data."

Rates on 15-year, fixed-rate mortgages also rose slightly. Averaging 6.07%, these rates rose from 6.05%. A year ago, 15-year mortgages were a bit higher at 6.11%.

Homebuyers that want to see what kind of loan term and rates would work for them can take advantage of Credible's free online tools to find their personalized rate in minutes.

THE AVERAGE DOWN PAYMENT FOR THE TYPICAL US HOME REACHES $127,750: ZILLOW

Sellers are tired of waiting for mortgage rates to drop drastically, causing a rise in listings the market hasn’t seen in a few years. The rate lock effect that was holding sellers in place is slowly releasing, creating more options for buyers.

Compared to last year, there was a 30% increase in home listings, according to Fannie Mae. An uptick in listings hasn’t led to more home sales, however. Sales are down overall compared to this time last year.

High home prices have been sticking around for years now, causing many buyers to be pickier about their options. Experts predict that the market will moderate soon, so many prospective buyers are now holding out until prices drop.

"The housing market continues to wait for affordability to improve, even as the supply of new and existing homes for sale slowly rises," said Doug Duncan, Fannie Mae senior vice president and chief economist.

"The slight decline in mortgage rates of late, following data pointing to gradually slowing economic growth, has not been enough to overcome the significant affordability constraints imposed on would-be homebuyers," Duncan said. "As such, despite more homes being listed for sale, actual home sales have not picked up." 

The housing market varies greatly depending on where buyers are located, so markets in certain areas of the country still remain tight, and likely will for a while.

"We continue to expect home price growth on a national level to decelerate – but remain positive – over the near term, but it should be noted that conditions often vary by region, particularly as it relates to supply," Duncan said. "For instance, many Sunbelt metros are currently seeing significant increases in for-sale inventories, in part due to new construction, while supply in much of the Northeast and Midwest remains extremely tight."

If you’re looking to purchase a home in today’s market, you can explore your mortgage options by visiting Credible to compare rates and lenders in minutes.

MANY HOMES ARE SITTING STAGNANT ON THE MARKET, CAUSING MORE FREQUENT PRICE DROPS

Much of the country remains in a state of unaffordability, but there are select areas where prices haven’t reached all-time highs. The Midwest is one of the more affordable areas, particularly Ohio and Indiana, Realtor.com found.

Ranked number one on Realtor.com’s list for affordability is Fort Wayne, Indiana. The city is located near many major hubs, including Chicago, Cincinatti and Detroit.

"Homes priced under $200,000 are in high demand and sell quickly," Fort Wayne real estate professional David Brough said. "These homes usually have several offers on them."

Since it’s so close to larger cities, residents of Fort Wayne get the benefits of a large city but the safety of a smaller community.

"You can purchase a very nice home and live in a safe community with lots of things to do, at a low cost compared to other big cities around the country," Brough said.

The next two cities on Realtor.com’s list are in Ohio: Canton and Akron. Both cities have median home prices in the $250,000 to $270,000 range, making them relatively affordable compared to other markets.

"As buyers contend with still-high home prices and mortgage rates across much of the country, affordable areas in the Midwest have gained popularity," said Hannah Jones, Realtor.com senior economic research analyst. "Buyers in these markets can take advantage of lower home prices without compromising on job prospects or lifestyle amenities."

To see if you qualify for a mortgage based on your current credit score and salary, check out Credible where you can compare multiple mortgage lenders at once.

FIRST-TIME HOMEBUYERS ARE OFTEN OVERWHELMED BY UNEXPECTED HOMEOWNERSHIP COSTS: STUDY

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.