“Importantly, homeowners have noticed these consistently lower rates, driving an uptick in refinance activity. Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home.”
The 30-year FRM averaged 6.27%, down from 6.30% last week and 6.44% a year ago. The 15-year FRM, popular among refinancing homeowners, also eased to 5.52% from 5.53% last week. A year ago, the 15-year FRM stood at 5.63%.
Freddie Mac’s data show that borrowing costs have hovered near their lowest levels since early October 2024, after a string of declines.
Mortgage rates are closely tied to the 10-year Treasury yield, which dropped to 4.02% from 4.14% last week.
The Federal Reserve’s recent decision to cut its main interest rate for the first time in a year has contributed to the downward trend, but policymakers have signaled that future moves will depend on inflation and labor market data.