Mortgage rates in the United States have recently declined to their lowest levels in 10 months, creating a more favorable environment for homebuyers. This drop in rates has increased purchasing power and led to a buyer-friendly housing market, as noted by Redfin. Despite this improvement, the housing market remains weak overall, with home prices still reflecting the previously higher mortgage rates of around 3.5%, while current rates are approximately 6.7%. Moody’s Analytics chief economist Mark Zandi has indicated that the housing market's weakness could become a drag on overall economic growth. Additionally, data from the Mortgage Bankers Association shows that by early July 2025, the average loan size for home purchase applications had decreased to $432,600, the lowest level since January 2025. The 30-year mortgage rate recently plunged to its lowest level in four months, further supporting the buyer-friendly conditions.