Mortgage borrowing costs in the United States retraced lower this week, reaching levels not seen since September 2022, according to data published by Freddie Mac.
The average rate on a 30-year fixed mortgage fell to 6.01% from 6.09% the prior week. That rate is down substantially from the 6.85% average recorded a year ago. The 15-year fixed-rate mortgage also declined, averaging 5.35% this week compared with 5.44% last week and 6.04% a year prior.
Freddie Mac’s chief economist commented on the trend.
"Mortgage rates dropped again this week, now down to their lowest level since September of 2022," said Sam Khater. "This lower rate environment is not only improving affordability for prospective homebuyers, it’s also strengthening the financial position of homeowners."
Khater also highlighted activity in the refinance market, noting that applications have increased materially.
He said refinance application activity has more than doubled over the past year, "enabling many recent buyers to reduce their annual mortgage payments by thousands of dollars."
Lower rates can ease monthly payment burdens for both buyers and existing homeowners who opt to refinance. The data point to an environment in which borrowing costs are moderating while incomes are growing, a combination that the report suggests may help the housing market recover from the strain it experienced under higher rates.
Although the headline numbers show meaningful declines week-on-week and year-on-year, the report limits its commentary to observed rate moves and application trends without forecasting future policy or market developments. The information focuses on current averages and the recent lift in refinance demand, leaving broader trajectories to future data releases.
Summary
Freddie Mac's weekly survey shows the 30-year fixed mortgage average at 6.01% and the 15-year at 5.35%, both lower than last week and a year ago, while refinance applications have more than doubled year-on-year. Officials say the lower-rate environment is improving affordability and strengthening homeowners' finances.