Mortgage Rates Hit Yearly Low

This week, mortgage rates have dropped to their lowest point of the year.

According to Freddie Mac’s latest Primary Mortgage Market Survey, the average interest rate for a 30-year fixed mortgage went down to 6.19%, down from 6.27% the previous week.

To give some context, a year ago—on October 24, 2024—the average rate was 6.54%.

Sam Cater, chief economist at Freddie Mac, remarked, “At the start of 2025, interest rates for 30-year fixed mortgages were above 7%; now they are nearly a whole percentage point lower.”

Kara Ng, a senior economist at Zillow Home Loans, indicated that “signs of an economic slowdown and a weakening labor market might lead to a slight dip in mortgage rates through 2026.” However, she also noted that Zillow expects 30-year fixed rates to stay between 6% and 7%, similar to the rates seen in recent years.

Ng also mentioned that a rate cut from the Federal Reserve in October appears “almost certain.”

Home buying activity has plummeted to its lowest levels since the 1990s, a trend highlighted in the annual National Housing Report from Harvard University’s Joint Center for Housing Studies (JCHS). Housing affordability is now a key political topic, especially among younger voters eager to start families.

In the 2024 campaign, Vice President J.D. Vance, alongside President Donald Trump, underscored how immigration affects housing demand and pricing.

Other Republican leaders are looking for ways to address the housing challenges. For instance, Rep. Marjorie Taylor Greene (R-Ga.) has proposed eliminating capital gains taxes on home sales, hoping to stimulate market activity.

Greene stated, “Homeowners who have lived in their homes for years, particularly seniors in regions where values have skyrocketed, shouldn’t feel trapped due to IRS penalties. My bill aims to free that equity, tackle the housing shortage, and bolster the long-term economic security of American families.”