Associated Press, by Matt Ott
NEW YORK (AP) – The average US mortgage rate for 30 years has fallen to its lowest level for the fifth consecutive week since early April.
Mortgage buyer Freddie Mac said Thursday that the long-term rate fell to 6.67% from 6.77% last week. A year ago, the price averaged 6.95%.
The borrowing costs for a 15-year fixed-rate mortgage that is popular for homeowners to refinance mortgages fell to 5.80% from 5.89% last week. A year ago, that was 6.25%, Freddie Mac said.
High mortgage fees can add hundreds of dollars a month to borrowers, reducing purchasing power. This helped keep the US housing market in a poor sales date back to 2022. This is when mortgage rates began to rise due to the low rock bottom reached during the pandemic.
Last year, sales of previously occupied US homes sank to their lowest levels in nearly 30 years. Many future home buyers have been slowing so far this year as they are disappointed by the slow, but still rising mortgage rates and home prices.
High borrowing costs are also putting pressure on new home markets. Last week, the government reported that sales of new US homes fell almost 14% from the previous month in May.
Recent data suggests that sales could rise in the coming months, particularly due to recent declines in mortgage rates. The US pending seasonally adjusted index of sales increased 1.8% in May from the previous month and 1.1% from last May, the National Association of Realtors said last week.
There is usually a month or two delay between signing the contract and the sale is completed.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ economic and inflation expectations.
The important barometer is the 10-year Treasury yield. This is used by lenders as a guide to mortgage pricing. Yield was 4.33% at noon on Thursday, down from 4.58% just a few weeks ago.
The average 30-year mortgage rate remains relatively high so far, slightly above the 7% this year set in mid-January. The low rate for the 30 years this year fell to 6.62% in early April.
Mortgage interest rates have been falling for the fifth consecutive week, reflecting recent pullbacks in bond yields.
The recent decline in mortgage rates appears to encourage some home shoppers. According to the Mortgage Bankers Association, mortgage applications rose 2.7% last week from a week ago.
Economists generally expect mortgage rates to remain relatively stable over the next few months, with forecasts hoping to keep the average 30-year mortgage rate in the 6% to 7% range this year.
Original issue: July 3, 2025, 12:20pm EDT
