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Local Housing Market Sees Mortgage Rates Dip to Over One-Year Low
[CITY, STATE] – Good news for prospective homeowners and those looking to refinance! Mortgage rates in the U.S. have fallen to their lowest point in over a year this week, according to data released Thursday by mortgage buyer Freddie Mac.
The latest Primary Mortgage Market Survey from Freddie Mac indicates that the average rate for a benchmark 30-year fixed mortgage has decreased to 6.19%, down from 6.27% just last week. This marks a significant change from a year ago, when the average rate on a 30-year loan stood at 6.54%.
Sam Khater, Freddie Mac’s chief economist, highlighted the substantial shift. “At the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower,” Khater stated. This decline has fueled a surge in refinancing activity, with refinances accounting for more than half of all mortgage activity for the sixth consecutive week.
For those considering shorter-term loans, the average rate on a 15-year fixed mortgage also saw a decrease, falling to 5.44% from last week’s 5.52%. A year ago, the 15-year fixed note averaged 5.71%.
This recent dip in rates aligns with market expectations, as experts anticipated an easing of mortgage rates ahead of the Federal Reserve’s expected rate cut next week. Realtor.com Senior Economist Jake Krimmel noted that the drop is also influenced by falling Treasury yields and ongoing uncertainty stemming from the government shutdown.
However, Krimmel cautioned that further significant declines might be challenging to achieve. “The upcoming cut is already priced in, while uncertainty over a potential December move, stubborn budget deficits and lingering inflation expectations continue to limit how far mortgage rates could fall,” he explained.
Despite potential limitations on future drops, this current shift presents a valuable opportunity for the housing market. Krimmel emphasized that rates have steadily eased throughout the “best time to buy” season, offering buyers and those looking to refinance welcome savings and some breathing room.
He added that as inventory climbs, buyers are gaining leverage. While affordability remains a hurdle, borrowers still retain meaningful control over their locked-in rate through factors like credit, loan type, and down payment decisions.