The average rate on a 30-year U.S. mortgage slipped this week to its lowest level in 10 months, but remains close to where it\u2019s been in recent weeks.<\/p>\n
The long-term rate eased to 6.56% from 6.58% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.35%.<\/p>\n
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, were unchanged from last week. The average rate held steady at 5.69%. A year ago, it was 5.51%, Freddie Mac said.<\/p>\n
Elevated mortgage rates have added to a slump in the U.S. housing market that began in early 2022, when rates began climbing from pandemic lows.<\/p>\n
For much of the year, the average rate on a 30-year mortgage has hovered relatively close to its 2025 high of just above 7%, set in mid-January. It\u2019s has mostly trended lower six weeks in a row and is now at the lowest level since Oct. 24, when it averaged 6.54%.<\/p>\n
The recent downward trend in mortgage rates bodes well for prospective homebuyers who have been held back by stubbornly high home financing costs. But it has yet to translate into a turnaround for home sales, which have remained sluggish this year<\/a> after sinking in 2024<\/a> to their lowest level in nearly 30 years.<\/p>\n Economists generally expect the average rate on a 30-year mortgage to remain near the mid-6% range this year.<\/p>\n Mortgage rates are influenced by several factors, from the Federal Reserve\u2019s interest rate policy decisions to bond market investors\u2019 expectations for the economy and inflation. <\/p>\n The main barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield was at 4.21% at midday Thursday, down from 4.24% late Wednesday. <\/p>\n The yield has been mostly easing since mid-July as bond traders weighed data on inflation,<\/a> the job market<\/a> and how the potential economic impact of the Trump administration\u2019s tariffs<\/a> may influence the Fed\u2019s interest rate policy moves.<\/p>\n