Mortgage rates have seen a decline, reaching their lowest point in over a year, according to Freddie Mac. The latest Primary Mortgage Market Survey revealed that the average rate for a 30-year fixed mortgage fell to 6.19%, down from 6.27% the previous week. This marks a significant change compared to 6.54% just a year ago.
Sam Khater, chief economist at Freddie Mac, highlighted the trend, noting that the average 30-year mortgage rate was above 7% at the start of 2025, and is now nearly a full percentage point lower. This shift has led to a surge in refinancing activity, which has accounted for more than half of all mortgage transactions for six consecutive weeks.
Additionally, the average rate for a 15-year fixed mortgage decreased to 5.44%, down from 5.52% last week, and down from 5.71% a year ago.
The recent drop in rates aligns with industry expectations as mortgage rates were predicted to ease ahead of a forthcoming Federal Reserve rate cut. This reduction comes amid decreasing Treasury yields and uncertainties related to a potential government shutdown.
While the current rates are better for buyers, challenges still persist. Realtor.com’s Senior Economist Jake Krimmel pointed out that while further reductions may happen, they could be limited due to ongoing issues such as budget deficits and inflation concerns.
For those in the housing market, this decline provides an important chance. As rates remain flexible, borrowers can still influence their mortgage terms through choices regarding credit, loan types, and down payments. Though affordability continues to be a struggle, this moment could be a prime time for buyers to act.
