- 30-year mortgage rates in the US have dropped to 6.19%, their lowest level since October 3, 2024.
- 15-year fixed-rate mortgage rates also declined, falling to an average of 5.44% this week.
- Refinancing continues to account for over half of mortgage activity for six straight weeks.
- Expectations of further Federal Reserve rate cuts are influencing the decline in mortgage rates.
- Experts caution that for significant affordability improvements, home prices also need to slow or decline alongside mortgage rates.
The average rate for a 30-year fixed mortgage in the United States has fallen to 6.19%, reaching its lowest point in over a year, Freddie Mac reported Thursday. This marks the third consecutive week of declining rates, bringing the level down to what was last seen on October 3, 2024.
Rates on 15-year fixed mortgages, which are commonly used by homeowners refinancing their loans, also decreased this week. The average rate for these loans dropped to 5.44% from 5.52% the previous week. For comparison, a year ago, rates for 15-year mortgages averaged 5.71%.
Freddie Mac’s Chief Economist, Sam Khater, said, “Mortgage rates continued to trend down this week, hitting their lowest level in over a year. At the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower. This dynamic has kept refinancings high, accounting for more than half of all mortgage activity for the sixth consecutive week.”
The recent fall in mortgage rates is partly due to a shift in the Federal Reserve’s approach to interest rates. After a rate cut last month, markets anticipate at least one more reduction before 2025 ends. Zillow Home Loans senior economist Kara Ng stated that an October Fed rate cut is seen as nearly certain and noted, “With signs of softer economic momentum and a deteriorating labor market, mortgage rates may drift slightly lower through 2026.” Ng also expects the 30-year fixed rate to remain within the 6% to 7% range seen in recent years.
Despite the drop in mortgage rates, Bright MLS chief economist Lisa Sturtevant
The average 30-year fixed mortgage rate in the United States has fallen to 6.19%, its lowest point in over a year, Freddie Mac announced Thursday. This decline marks the third consecutive week of dropping rates and returns borrowing costs to levels last seen on October 3, 2024.
Meanwhile, rates on 15-year fixed mortgages, often chosen by homeowners refinancing their loans, eased to 5.44% from last week’s 5.52%. One year ago, the average 15-year rate was 5.71%.
Freddie Mac Chief Economist Sam Khater said, “Mortgage rates continued to trend down this week, hitting their lowest level in over a year. At the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower. This dynamic has kept refinancings high, accounting for more than half of all mortgage activity for the sixth consecutive week.”
The continued rate decline follows a shift in tone by the Federal Reserve on interest rates. A rate cut took place last month, and markets expect at least one more before the year ends. Zillow Home Loans senior economist Kara Ng called an October Fed rate cut “a near certainty” and noted, “With signs of softer economic momentum and a deteriorating labor market, mortgage rates may drift slightly lower through 2026.” Ng also said the 30-year fixed mortgage rate is likely to stay between 6% and 7%, the range seen in recent years.
Despite falling rates, Bright MLS chief economist Lisa Sturtevant emphasized that true affordability gains need both lower mortgage rates and much slower home price growth or declines. She added that even a drop below 6.5% in mortgage rates could have an important psychological effect on buyers and encourage renewed market interest.
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