Mortgage Rates Fall to Lowest Level in Over a Year — What It Means for Homebuyers

Mortgage rates took another dip this week, hitting their lowest point in more than a year, according to new data from Freddie Mac.

The average rate for a 30-year fixed mortgage fell to 6.19%, down from 6.27% just a week ago. A year ago, the same loan averaged 6.54%, marking a steady decline that has brought welcome relief to homebuyers and refinancers.

“At the beginning of 2025, 30-year mortgage rates were above 7%, but they’ve since fallen by almost a full percentage point,” said Sam Khater, chief economist at Freddie Mac. “This decline has fueled a surge in refinancing, which has now represented over half of all mortgage applications for six consecutive weeks.”

Meanwhile, the 15-year fixed mortgage averaged 5.44%, down from 5.52% the week before and 5.71% one year ago.

Experts say the continued slide reflects growing confidence that the Federal Reserve will cut interest rates next week. Falling Treasury yields and economic uncertainty caused by the ongoing government shutdown have also played a role, according to Realtor.com Senior Economist Jake Krimmel.

However, Krimmel cautioned that the decline may soon slow. “The upcoming Fed cut is already baked into the market,” he said. “Concerns about future rate moves, high federal deficits, and lingering inflation expectations could prevent mortgage rates from dropping much further.”

Still, this latest shift gives homebuyers a rare window of opportunity.

“Rates have been steadily easing during what’s considered the ‘best time to buy’ season,” Krimmel added. “That’s giving buyers and refinancers a bit of breathing room as housing inventory rises and buyers gain negotiating power. While affordability remains tight, borrowers can still secure better deals through strong credit scores, smart loan choices, and larger down payments.”