Following a slight dip in inflation, mortgage rates fell below 7% Wednesday.

The average fixed rate on a 30-year home loan is now 6.99%, according to Mortgage News Daily — a 0.12% decrease from a day earlier.

What You Need To Know

  • Mortgage rates fell below 7% for the first time in five weeks Wednesday

  • The average fixed rate on a 30-year mortgage is now 6.99%

  • The median monthly mortgage payment in the United States is now $2,858, according to Redfin

  • The mortgage rate fell after the Bureau of Labor Statistics reported inflation had cooled slightly in April 

“The Consumer Price Index is the biggest reliable source of momentum for interest rates when it comes to scheduled data — big enough that the results can come in right in line with forecasts and will have a big impact,” Mortgage News Daily said in a statement.

On Wednesday, the Bureau of Labor Statistics reported prices rose 3.4% in April compared with the year prior. It was the first time the Consumer Price Index had fallen in 2024.

Redfin reported Thursday that the median monthly mortgage payment in the United States is now $2,858 — only $26 less than the all-time high from April, when mortgage rates were at a five-month high of 7.52%.

“High prices and rates are challenging, but there are ways for buyers to take advantage of the somewhat slow market,” Redfin Premiere Agent Marsha McMahon-Jones said in a statement. “Sellers know that high mortgage rates mean they should expect negotiations, expect offers to come in under list price and be ready for some back and forth on things like repairs and closing costs.”

Buyers are able to compensate for today’s mortgage rates by getting homes for slightly less than asking price, she said.