Mortgage rates fall near 6.7% as housing inventory declines

Mortgage rates have declined over the past three weeks, with recent data showing rates near 6.72% if mortgage spreads return to their 2026 lows, according to HousingWire.

Housing inventory decreased to 902,740 units, while mortgage demand stabilized after previous fluctuations, suggesting a potential market shift beyond typical seasonal patterns.

Mortgage spreads, which influence mortgage rates, rose slightly to 2.27% from 2.23% the prior week but remain near multiyear lows, supporting the possibility of sub-7% mortgage rates if spreads tighten again.

The 10-year Treasury yield, a key factor in mortgage rates, recently dropped from a high of 5.35% to about 4.82%, contributing to the recent mortgage rate decline, HousingWire reported.

Despite recent improvements, experts caution that mortgage rates may not significantly improve until the 10-year yield falls below 4.70% with sustained bond buying, indicating that the market is still in flux.