After months of sticker shock in the housing market, homebuyers just got a bit of breathing room. The average rate on a 30-year fixed U.S. mortgage has dipped to 6.63%, its lowest point since April, according to Freddie Mac. That’s down from 6.72% last week and not far from last year’s average of 6.47%.
Rates on 15-year fixed mortgages, a favorite among homeowners refinancing, also fell — dropping to 5.75% from 5.85% a week ago. While still high compared to the pandemic’s rock-bottom levels, this marks the third straight week of declines, signaling potential relief for a market stuck in a sales slump since early 2022.
The pullback comes as the 10-year Treasury yield — the key benchmark for mortgage pricing — has slid to 4.23%. Weaker-than-expected job numbers have fueled speculation that the Trump administration’s tariff strategy may be prompting employers to hit pause on hiring. That, in turn, has Wall Street betting heavily on a Federal Reserve interest rate cut in September, something President Trump has publicly urged.
Lower mortgage rates could breathe life into home sales, which fell last year to their lowest level in nearly three decades. More homes are hitting the market, and sellers in cities like Miami, Chicago, and Los Angeles are lowering prices compared to last year.
Still, economists warn rates may not tumble much further. Inflation risks remain, and any Fed rate cut could reheat price pressures. Fannie Mae and Realtor.com both expect 30-year rates to hover above 6% for the rest of 2025, ending the year near 6.4%.
For now, buyers who can lock in at current levels are gaining an edge — but whether this dip marks the start of a lasting trend or just a temporary breather remains to be seen.
