Mortgage rates slide down, staying close to their yearly low levels.
Freddie Mac reported that the average 30‑year fixed‑rate mortgage in the United States lowered to 6.21% on Thursday, a decrease of 0.01 percentage point from the previous week’s 6.22%. The same data show the 15‑year fixed rate falling to 5.47% from 5.54%, while year‑ago averages were 6.72% for 30‑year and 5.92% for 15‑year loans.
The 10‑year Treasury yield was 4.12% at midday Thursday, unchanged from a week earlier. Rates tend to move in tandem with this benchmark, reflecting Federal Reserve policy shifts and bond market expectations for inflation and economic growth.
Since dropping to 6.17% on Oct. 30, the 30‑year rate has largely stayed near that level. Mortgage rates began easing in July after anticipated Fed rate cuts, but rose again after the first cut in late 2024 when Treasury yields climbed toward 5%.
Applications to refinance an existing home loan made up 59% of all new mortgage applications last week, the highest share since September, according to the Mortgage Bankers Association. Economists expect the 30‑year average to remain just above 6% next year.