Mortgage rates: 15 year dips below 6%

Mortgage Rates and Market Trends - US mortgage rates experienced the most significant weekly drop since February, with the 15-year mortgage rate falling below 6% for the first time in four months, matching its lowest level since October [1] - Despite lower mortgage rates, the industry has not observed a corresponding increase in purchase applications, although refinance activity has seen a notable uptick [3] - Realtor.com data indicates rental market softening with 24 consecutive months of rent decreases, showing a 2.7% year-over-year decline in asking rents as of July [9] Shelter Inflation and Affordability - Shelter costs continue to decelerate, but still outpace overall inflation [1] - Shelter inflation remains persistent due to the significant rent increases during the pandemic, with current rents catching up to those increases [8] - A Yahoo Finance poll indicates that most people feel the housing market is out of reach at current prices, with home prices up 15% to 50% from pre-pandemic levels in some metro areas [12] Housing Market Dynamics - Home ownership rates have softened due to high costs, particularly impacting younger households who are more flexible between renting and owning [14][16] - In many major metropolitan areas, renting is currently more financially advantageous than buying when considering simple monthly costs [17] - Slowdown in multi-family permitting activity in some metro areas like Philadelphia, Orlando and San Diego suggests builders are reacting to market conditions and potential impacts of tariffs [20]