Mortgage rates inched back up this week, with the average rate for a 30-year fixed-rate mortgage rising to 6.30%, up from 6.26% 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 6.08%.
“Following several weeks of decline, mortgage rates inched up this week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Housing market activity continues to hold up with purchase and refinance applications increasing by 18 percent and 42 percent, respectively, compared to the same time last year.”
The average rate for a 15-year fixed-rate mortgage was 5.49%, up from 5.41% last week and up from 5.16% last week.
“This modest increase follows a period of steady rate declines and reflects post-Fed market reactions,” says Samir Dedhia, CEO for One Real Mortgage, in a statement. “While the central bank cut rates by 25 basis points on September 17, much of that move had already been anticipated by the market. Since then, concerns around inflation and long-term economic uncertainty have pushed Treasury yields slightly higher, which tends to influence mortgage pricing.”
“Despite that, housing market activity remains strong and growing,” Dedhia says. “Purchase applications are up 18 percent year-over-year, while refinance applications have jumped 42 percent compared to the same time last year. Borrowers are staying engaged and ready to act, especially with rates still hovering near the lowest levels we’ve seen in almost a year. Many homeowners are locking in refinance deals, while buyers are exploring creative mortgage options, such as 20-year fixed loans, which have a lower mortgage rate than a 30 year fixed mortgage product.”
“Looking ahead, markets are keeping a close eye on what comes next,” Dedhia adds. “The Fed has hinted at more rate cuts later in 2025 and into 2026, but those moves will depend entirely on how inflation, GDP, and the broader economy perform. If inflation stays sticky or economic growth surprises to the upside, we may see fewer rate cuts than markets are hoping for, which could keep mortgage rates elevated in the near term. For now, today’s rates continue to offer a meaningful window of opportunity.”
Photo: Susan Q Yin