Mortgage rates fell to the lowest level in more than a year this week, with the average rate for a 30-year fixed-rate mortgage dropping to 6.19%, down from 6.27% 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 6.54%.
“Mortgage rates continued to trend down this week, hitting their lowest level in over a year,” says Sam Khater, chief economist for Freddie Mac, in a statement. “At the start of 2025, the 30-year fixed-rate mortgage surpassed 7 percent, while today it hovers nearly a full percentage point lower. This dynamic has kept refinances high, accounting for more than half of all mortgage activity for the sixth consecutive week.”
The average rate for a 15-year fixed rate mortgage was 5.44%, down from 5.52% last week and down from 5.71% a year ago.
“Mortgage rates have now held near their lowest levels in over a year, a solid shift after earlier this year when the 30‑year rate topped 7 percent,” says Samir Dedhia, CEO for One Real Mortgage, in a statement. “That drop is meaningful and homeowners are taking notice.”
“This decline is the result of a few aligned factors: investors are increasingly expecting further rate cuts from the Federal Reserve and are also responding to signs of a cooling economy and labor market,” Dedhia says. “These dynamics have pushed down long‑term bond yields, which in turn help determine mortgage rates. That said, the market is still cautious: even with lower rates, inflation remains sticky and the Federal Reserve’s future policy path is far from guaranteed.”
“For consumers, this is a compelling window,” Dedhia adds. “Rates in the low 6 percent range are creating real opportunities. We’re seeing refinance activity rise significantly – more than half of all mortgage applications for several weeks now – and buyers are showing renewed confidence with rising purchase activity. With higher housing inventory and slower price growth working in parallel, this could be one of the more favorable environments of the past year to buy or refinance.”
Photo: Declan Sun