The average rate on a 30-year U.S. mortgage fell to its lowest level since early May, an encouraging trend for prospective homebuyers at a time when the U.S. housing market remains largely held back by elevated borrowing costs and rising prices.

The current state ofmortgage rates is at the forefront of discussions for many potential homebuyers, especially as interest rates have remained elevated for much longer than initially anticipated. With the housing market in flux and home prices continuing to climb,

The average rate on 30-year fixed home loans decreased to 6.67% for the week ending July 3, down from 6.77% last week.