Homebuyers Gain $16,000 in Purchasing Power As Mortgage Rates Dip to Lowest Level Since April
By: Dana Anderson | Published: 2025-07-01 20:06:00 | Source: www.redfin.com
The daily average mortgage rate dipped to 6.67% to start July, down from roughly 7.1% five weeks earlier. On-the-fence house hunters should consider jumping in while they have more purchasing power–and more negotiating power.
A homebuyer on a $3,000 monthly budget has gained $16,000 in purchasing power in the last five weeks. That buyer can afford a $455,000 home with a 6.65% mortgage rate, roughly the daily average on July 1. That’s the lowest daily average mortgage rate since early April.
Declining rates are giving homebuyers some wiggle room in their budgets. Rates fell from a recent peak of 7.08% in late May to 6.67% at the start of July. On a $3,000 monthly budget, a buyer could have purchased a $439,000 home with a 7.08% rate.
To look at affordability…
