The average 30-year fixed rate edged down to 6.72% as of July 31, according to Freddie Mac's weekly Primary Mortgage Market survey. The average dropped 2 basis points from 6.74% a week earlier, and was down by a single basis point compared to 6.73% in the same week one year ago. 

"The 30-year fixed-rate mortgage showed little movement, remaining within the same narrow range for the fourth consecutive week," said Freddie Mac Chief Economist Sam Khater in a press release. 

Similarly, the 15-year fixed average edged downward to 5.85% compared to 5.87% seven days earlier. It took a larger drop from the same Freddie Mac survey one year ago, when the 15-year mortgage rate came in at 5.99%.

Thirty-year rates have fluctuated within a narrow band of 6.5% to 7% this year, as markets weigh economic developments with geopolitical concerns that could impact consumer prices, including tariff policies. The result has been a stubborn rate environment, particularly in July.  

"This persistent range reflects an ongoing tug of war: signals of a gradually cooling economy put downward pressure on rates, while stubborn inflation keeps them elevated," said Zillow Home Loans senior economist Kara Ng in a statement released Wednesday evening. 

Reactions to the Federal Reserve's rate decision

The latest Freddie Mac release comes just a day after the close of the latest Federal Open Market Committee meeting, where bank officials held the funds rate at current levels as many expected. 

Yields for 10-year Treasurys, which influence mortgage rates movements, came in at 4.34% as of Thursday morning, falling from 4.38% prior to the Federal Reserve's announcement on Wednesday to approach its week-long low. Over the past seven days 10-year yields fluctuated between 4.32% and 4.42%. 

Economic uncertainty was likely a key reason for the Fed to hold on to current rate levels for another meeting, despite ongoing calls for cuts by a wide swath of public figures, including the Federal Housing Finance Agency director and the president himself, some experts said. 

"The FOMC statement acknowledges that economic growth has moderated but given the uncertainty about the future paths for inflation and unemployment, the majority of the FOMC members determined that the better course was to hold rates steady for now," noted Mortgage Bankers Association Chief Economist Mike Fratantoni in a post-decision remark. 

Instead, softening in the job market will likely have a bigger impact on the timeline to lower rates, he added. 

For home buyers and other borrowers, the Fed policy decision offers little likelihood for significant downward rate movement this year, leaving the housing market "stuck," Ng said.

"Even if mortgage rates edge slightly lower by late 2025, it won't significantly alleviate affordability pressures faced by the typical household," she said.

Others voiced a degree of cautious optimism despite the lack of good news.

"The home lending industry remains optimistic of a rate cut this year, but it looks to be some time before the Federal Reserve enacts an interest rate cut decision," wrote Matt Pettit, president of Mountain West Financial. "New home starts and sales will continue to dwindle until lending prices come down for mortgage companies."

Recent trends in housing data could provide some momentum for the market as well, Khater said. 

"Continued economic growth, along with moderating house prices and rising inventory, bodes well for buyers and sellers alike," he said. 

What other rate indicators are reporting

Along with Freddie Mac, other rate providers similarly posted numbers that point to a flat rate environment. 

Lender Price's rate tracker had the 30-year average at 6.83% as of Thursday morning just off 6.84% a week earlier. 

On Wednesday, MBA's mortgage application survey, which tracked weekly data through last Friday, found the 30-year conforming average finished averaging 6.83%. The rate similarly declined by 1 basis point from the prior week's data. 

The trade group anticipates much of the same going forward this year, its chief economist said. 

"MBA's forecast is for 30-year fixed mortgage rates to move just a little lower to perhaps 6.5% over the next year, as longer-term rates continue to be impacted by large deficits and debt and the growing issuance of Treasury securities to fund those deficits," Fratantoni said.