Mortgage rates edged slightly lower, Freddie Mac data released May 1 shows. But what’s in store for home buyers in the next month — and year?

Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. This week's reading dipped 5 basis points to 6.76%. Last September, the average sank as far as 6.08%. But back in October 2023, Freddie Mac's average saw a historic rise, surging to a 23-year peak of 7.79%.

Most housing economists expect average rates for a 30-year fixed mortgage to hover between 6.5% and 7% throughout the year, which could encourage some homebuyers to enter the market in time for spring. At the same time, high home prices and limited inventory, on top of the loss of purchasing power, remain a challenge.