Heading into the Fourth of July weekend, there's more to celebrate than just the holiday. Freddie Mac reports that the 30-year mortgage rate has dropped again, now at 6.67%, while the 15-year rate sits at 5.8%. This is great news for anyone looking to buy a home right now!

At the end of June, the latest survey showed the 30-year mortgage rate at 6.77%.

““The average 30-year fixed-rate mortgage decreased for the fifth consecutive week. This is the largest weekly decline since early March”

“Declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market giving prospective buyers an advantage.””

— Sam Khater, Freddie Mac’s chief economist

The newest jobs report came in strong, which means the Federal Reserve is less likely to lower interest rates at their July meeting. Back in June, the Fed held rates steady, and at that time, mortgage rates were expected to stay around 6%.

“ “With relatively resilient economic conditions, mortgage rates may not fall much further this summer””

— Bright MLS Chief Economist Lisa Sturtevant

One reason the Fed held back on cutting rates was because of the overall economic uncertainty. Even though mortgage rates have been steadily dropping over the past few weeks, Sturtevant notes that homebuyers remain cautious, and it’s not just because of the typical seasonal slowdown in the housing market.

The most recent report on mortgage applications revealed a rise, mainly thanks to more people refinancing their homes. At the same time, consumer confidence has taken a dip, as Sturtevant pointed out.

Affordability remains a struggle. Even though prices are easing up in some areas, they actually reached new highs in others last May, Sturtevant explained. Because of this, some buyers are holding off, waiting for both interest rates and home prices to drop before jumping into the market.

““Affordability is still a challenge. While prices are weakening in some markets, they hit new record highs in other markets in May”

“Some buyers are waiting both for rates and prices to come down before they get into the market.” ”

— Bright MLS Chief Economist Lisa Sturtevant

Here’s a look at this week’s numbers.

• As of July 3, the average 30-year fixed mortgage rate dipped to 6.67%. That’s a slight drop from last week’s 6.77%, and it's also lower than where it was this time last year—when it averaged 6.95%.

• The average 15-year fixed mortgage rate is now at 5.80%, a bit lower than last week’s 5.89%. It’s also down compared to this time last year, when it was sitting at 6.25%.