US Mortgage Rates Hit 12-Month Low, Dropping to 6.19%

Long-term mortgage rates in the United States have fallen to their lowest point in over a year. The average rate on a 30-year fixed mortgage is now 6.19%. This decline marks the third consecutive week of falling borrowing costs for homebuyers.

The drop was confirmed by Freddie Mac in its weekly survey. This trend offers significant relief to the housing market, which has been grappling with high financing costs.

Factors Driving the Downward Trend

According to Freddie Mac, the rate has fallen from 6.27% just last week. It now stands at its lowest level since early October of last year. The current average is substantially lower than the 7% peak seen at the start of 2025.

Economists point to shifting expectations for the Federal Reserve‘s policy. Reports from Reuters indicate that investors are anticipating interest rate cuts from the central bank. This sentiment has directly influenced the bond market, which mortgage rates closely follow.

The 10-year Treasury yield, a key benchmark for lenders, has also moved lower. This combination of factors has created a favorable environment for lower mortgage rates. The sustained decline is a welcome change for prospective homeowners.

Impact on the US Housing Market

The lower borrowing costs are already stimulating activity. Data from the National Association of Realtors shows existing home sales rose recently. This suggests buyers are being drawn back into the market by improved affordability.

Falling mortgage rates, coupled with a slight cooling in home prices, are increasing purchasing power. This is crucial for first-time buyers who have been largely sidelined. The market is showing clear signs of a positive response to the financial shift.

While affordability remains a challenge, the current direction is encouraging. The expectation of further Federal Reserve action could sustain this momentum. The housing sector may be entering a more stable phase of growth.

The continued slide in mortgage rates is providing a crucial boost to the American housing market. With borrowing costs at a 12-month low, homebuyers are finally finding some financial relief. This trend may signal a turning point for affordability and market activity.

Info at your fingertips

What is the current average 30-year mortgage rate?

The average rate is now 6.19%. This is a decrease from 6.27% the previous week. It is the lowest rate recorded in over one year.

Why are mortgage rates falling now?

Rates are falling due to expectations that the Federal Reserve will cut its benchmark interest rate. Investor activity in the bond market is also a major contributing factor to the decline.

How does this affect home sales?

Lower rates have already correlated with an increase in existing home sales. This improved affordability is bringing more buyers back into the housing market after a slow period.

Who reports the official mortgage rate?

The rate is officially reported by Freddie Mac. The government-backed company releases a weekly survey tracking the average long-term mortgage rate in the United States.

What was the peak mortgage rate this year?

The average 30-year fixed mortgage rate surpassed 7% at the start of 2025. The current rate is nearly a full percentage point lower than that high point.