Mortgage rates continued to fall this week, with the average rate for a 30-year, fixed-rate mortgage dropping to 6.26%, down from 6.35% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.09%.
“Mortgage rates decreased yet again this week, prompting many homeowners to refinance. In fact, the share of mortgage applications that were refinances reached nearly 60 percent, the highest since January 2022,” says Sam Khater, chief economist for Freddie Mac, in a statement.
The average rate for a 15-year fixed-rate mortgage was 5.41%, down from last week when it averaged 5.50% but up from a year ago when it averaged 5.15%.
“This marks one of the sharpest one-week drops in the past year and places rates at their lowest level since early October 2023,” says Samir Dedhia, CEO for One Real Mortgage, in a statement. “The steady decline is not just psychological; it’s reshaping borrower behavior across the country.”
“We’re seeing a surge in refinance activity, now accounting for nearly 60 percent of all mortgage applications, a level not seen since January 2022,” Dedhia says. “That shift reflects real savings on the table and a sense of urgency among homeowners looking to lock in lower rates while they can. Buyers are also stepping off the sidelines, reassessing affordability as monthly payments improve with each rate drop. There’s a growing sense that this isn’t just a temporary dip, but the start of a more favorable borrowing landscape.”
“This week’s movement was largely driven by the Federal Reserve’s recent decision to cut interest rates by 25 basis points, the first cut in nine months,” he adds. “While the Fed Chair stopped short of committing to additional cuts this year, the signal was enough to push bond yields lower and build optimism across the housing market. Whether you’re a buyer, seller, or homeowner considering a refinance, this window could offer the kind of financial opportunity we haven’t seen in over a year.”
Photo: Alison Pang