Freddie Mac Reports Drop in Mortgage Rates

This week, mortgage buyer Freddie Mac revealed that mortgage rates have dipped to their lowest point in a year.

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

In comparison, just a year ago, the rate stood at 6.54%.

“At the start of 2025, rates were over 7%. Now, they’re nearly a percentage point lower,” noted Sam Cater, Freddie Mac’s chief economist. “This ongoing trend has contributed to a robust refinancing market, making up more than half of all mortgage activity for six consecutive weeks.”

Why Are Mortgage Rates Holding Steady Despite Fed Cuts?

The average rate for a 15-year fixed mortgage has also seen a slight reduction, falling to 5.44% from 5.52% last week—a decline from last year’s average of 5.71%.

This week’s shifts reflect market expectations for lower mortgage rates, especially ahead of the anticipated Fed rate cut next week. Lower U.S. Treasury yields and the lingering uncertainty surrounding a potential government shutdown are also contributing factors, according to Jake Krimmel, a senior economist at Realtor.com.

“However, further decreases might be challenging,” Krimmel cautioned. “Some future rate cuts have already been factored in, but uncertainties about a possible policy decision in December, ongoing fiscal deficits, and sustained inflation concerns might limit how much mortgage rates can decline.”

This change could present significant opportunities for buyers in the housing market.

“Interest rates are continuing to ease, which is potentially the best time for buyers, enabling some savings as inventory rises and buyers gain leverage,” Krimmel added. “While affordability remains a hurdle, borrowers can still exert considerable control over fixed interest rates based on credit, loan type, and down payments.”