A rise in mortgage interest rates has led to a decline in people applying for home loans and homeowners refinancing.

The average rate on 30-year fixed home loans registered 6.74% for the week ending July 24, barely down from 6.75% last week.

Mortgage rates hold steady July 23, 2025, with 30-year fixed at 6.625%. Trump hints at capital gains tax cut for home sales.

The average rate on 30-year fixed home loans increased to 6.75% for the week ending July 17, up from 6.72% last week.

Analysts believe a modest drop in mortgage rates could prove to be a "magic bullet" for the U.S. housing market.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased. The average rate dropped to 5.87% from 5.92% last week. A year ago, it was 6.07%, Freddie Mac said.

Mortgage rates dropping to 6% would allow for over 5 million more households to afford a home, according to the National Association of Realtors.

The wait for a more affordable housing market is only getting longer as lingering inflation and tariff uncertainties keep the Fed in monitor mode.

Trump is fed up with Powell, but experts say Americans seeking cheaper interest rates and lower prices shouldn’t be rooting for the Fed chair to be forced into an early exit.