Mortgage rates are stuck near 6.5%. A new housing law may make buying easier - eventually

Key Points:

• Mortgage rates remain high due to geopolitical tensions with Iran and inflation concerns, with the average 30-year fixed rate at 6.49%, near this year's peak, dampening hopes for improved home affordability as the spring buying season ends.
• The US 10-year Treasury yield, influenced by inflation expectations and oil prices, remains elevated amid renewed US-Iran conflicts, contributing to sustained high mortgage rates and uncertainty about future Federal Reserve interest rate hikes.
• Despite recent economic disruptions, Zillow projects mortgage rates to gradually decline to around 6.3% by the end of 2026, though this would still represent a slight affordability challenge compared to late 2025 levels.
• Existing home sales dropped 2.4% in June from May, reflecting buyer sensitivity to mortgage rates above 6%, yet median home prices hit a June record of $440,600, underscoring ongoing affordability issues amid limited supply.
• The bipartisan 21st Century Road to Housing Act, designed to increase housing supply through measures like easing manufactured home additions and funding home repairs, is set to become law unless vetoed by President Trump, though its impact on prices and availability will be gradual.