Analysts believe a modest drop in mortgage rates could prove to be a "magic bullet" for the U.S. housing market.

The average rate on 30-year fixed home loans increased to 6.75% for the week ending July 17, up from 6.72% last week.

The price of homeownership remains out of reach for many Americans as home prices remain high and mortgage rates continue to hover close to 7%.

Mortgage rates today are steady, but loan demand fell 10% after recent rate increases. See what’s driving today’s trends.

The average rate on 30-year fixed home loans increased to 6.72% for the week ending July 10, up from 6.67% last week.

On the bright side, however, rates have stayed within a tight range between 6.7% and 6.9% for much of the past six months. Most industry experts expect this trend to continue through the end of the year, with Realtor.com and Zillow forecasting rates to reach 6.4% and “near the mid-6% range,” by the end of 2025, respectively.

Historic mortgage rate trends. During the last three years, mortgage rates have been on the rise. In early 2022, the average 30-year fixed rate was 4.72% and the 15-year fixed rate was 3.91%.