The average long-term U.S. mortgage rate is now down to its lowest level in more than three years.<\/p>\n
The benchmark 30-year fixed rate mortgage rate eased to 6.06% this week, down from 6.16% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 7.04%.<\/p>\n
The last time the average rate was lower was Sept. 15, 2022, when it was at 6.02%.<\/p>\n
Meanwhile, borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, dropping to 5.38% from 5.46% last week. A year ago, that average rate was at 6.27%, Freddie Mac said.<\/p>\n
Lower mortgage rates boost homebuyers\u2019 purchasing power, good news for home shoppers at a time when the housing market remains in a deep slump after years of soaring prices and elevated mortgage rates have shut out many aspiring homeowners.<\/p>\n
Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.<\/p>\n
Mortgage rates began easing in July in anticipation of a series of Fed rate cuts, which began in September and continued last month<\/a>.<\/p>\n The Fed doesn\u2019t set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.<\/p>\n The pullback in mortgage rates helped drive sales of previously occupied U.S. homes higher on a monthly basis the last four months of 2025. Even so, home sales remained stuck at a 30-year low last year,<\/a> extending the housing market\u2019s slump into its fourth year.<\/p>\n Lower mortgage rates have been helpful for home shoppers who can afford to buy at current rates. The median U.S. monthly housing payment fell to $2,413 in the four weeks ending Jan. 11, according to Redfin. That\u2019s a 5.5% drop from the same period a year earlier and near the lowest level in two years.<\/p>\n