Matt Ott
The average US 30-year mortgage rate has been eased for the third consecutive week.
Mortgage buyer Freddie Mac said Thursday that the average rate fell to 6.89% from 6.95% last week. A year ago, the average was 6.64%.
The 15-year fixed-rate mortgage loan cost has retreated again this week, as it has become popular with homeowners looking to refinance their mortgage for a lower fee. The average rate fell to 6.05% from 6.12% last week. A year ago, that averaged 5.9%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market responds to the Federal Reserve’s interest rate policy decisions. The average 30-year mortgage rate fell shortly to its two-year low, just above 6% last September, but has since risen almost since, with a sharp 10-year Treasury yield. It has been rising repeatedly. Mortgage pricing.
The yield, which was 3.62% in mid-September, reached 4.79% three weeks ago. The solid US economy and concerns about tariffs and other policies that could come from President Donald Trump have also helped boost bond yields.
The 2010 Treasury yield was 4.43% in noon trading on Thursday.
The rise in mortgage rates, which allow borrowers to add hundreds of dollars a month, has extended the slump in home sales that began in 2022 and discouraged home shoppers.
Sales of previously occupied US homes rose in December for the third consecutive month, but 2024 was the worst year for home sales in nearly 30 years.
New data on pending home sales could potentially decline further in the coming months. The National Association of Realtors finished its four-month increase in December, down 5.5% from the previous month.
Typically there is a month or two delay when the contract is signed and when the home sale is completed.
For those hoping to have a significant withdrawal of mortgage rates, economists say it is unlikely.
The forecast mainly demands that the average rate for a 30-year mortgage is above 6% this year, with some economists including a high range of 6.8%.
The Federal Reserve had not changed its benchmark interest rates after three consecutive cuts in 2024.
Original issue: February 6, 2025, 12:29pm EST
