Mortgage rates have declined for the first time in five weeks, averaging 6.85% as of June 5, according to Freddie Mac. However, many homebuyers are still facing significant hurdles in affording homes. Housing prices continue to rise, making it difficult for buyers to qualify even with lower interest rates.
The median-priced home in April would have a monthly payment of $2,980 at the current rate, compared to $2,965 a year ago when mortgage rates were higher and home prices lower. Analysts argue that lower interest rates alone may not be enough to revive the sluggish housing market, as rising home prices continue to erode affordability.
To overcome these challenges, some homebuyers are using “hacks” such as saving money for closing costs, taking advantage of down payment assistance programs, and being resourceful with their finances. For example, Star Addams, a 52-year-old single mother who recently bought a home in Washington State, was able to secure a mortgage by bringing significant equity to the table.
“I saved every penny I could, even on small purchases,” she said. “It made all the difference when it came time for closing costs.” With her help of down payment assistance and some smart financial planning, Addams was finally able to turn her dream of homeownership into a reality.
Source: https://eu.usatoday.com/story/money/personalfinance/real-estate/2025/06/05/mortgage-rates-down-homeownership-hacks/83992450007