Mortgage rates plummeted this week, as the average rate for a 30-year fixed-rate mortgage (FRM) dropped 15 basis points to 6.35%, down from 6.50% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for 30-year was 6.20%.
“The 30-year fixed-rate mortgage fell 15 basis points from last week, the largest weekly drop in the past year,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Mortgage rates are headed in the right direction and homebuyers have noticed, as purchase applications reached the highest year-over-year growth rate in more than four years.”
The average rate for a 15-year fixed-rate mortgage was 5.50%, down from 5.60% last week but up from 5.27% a year ago.
“Mortgage rates saw a sharp and encouraging drop this week,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “The 30-year fixed came in at 6.35 percent, down from 6.50 percent, and the 15-year fixed fell to 5.50 percent, down from 5.60 percent. That 15-basis-point move in the 30-year is the biggest one-week drop we’ve seen in over a year, and brings us back to the lowest levels since October 2024.”
“Lower rates are already making a visible impact,” Dedhia says. “We’re seeing a noticeable pickup in buyer activity, with purchase applications posting the strongest year-over-year growth in more than four years. Refinancing is also heating up, nearly 47 percent of mortgage applications last week were refinances, which tells us homeowners are seeing real opportunity in today’s market.”
“The market is clearly responding to signs that the Fed is on track to cut rates, possibly as early as next week’s meeting on September 17,” he adds. “Many are also expecting additional cuts to follow. While nothing is guaranteed, this growing confidence has helped pull mortgage rates down, and that momentum could continue. For anyone looking to buy, sell, or refinance, now is the time to start planning.”
Photo: Declan Sun