Mortgage rates fall to lowest level of 2025 | Mortgage rates are the lowest in over a year. Will …

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Mortgage rates fall to lowest level of 2025

Americans frustrated by high home borrowing rates may have gotten some welcome news this week.

The average 30-year fixed mortgage rate dropped to 6.19% for the week ending October 23, down from 6.27% last week, according to Freddie Mac data released Thursday.

After years of sluggish activity, sidelined homebuyers may finally be ready to jump back in, with mortgage rates now at their lowest level in more than a year and home prices softening across many major metro areas.

“At the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Mortgage rates are the lowest in over a year. Will the housing market respond?

Corrections & Clarifications: An earlier version of this story misattributed quotes from Bill Banfield, Rocket's chief business officer.

As rates for home loans hit their lowest level in over a year, housing market activity is responding. But upside from here may be limited unless rates take another big dip lower.

The average national rate for 30-year fixed-rate mortgages was 6.19% in the most recent week, Freddie Mac said on Oct. 23. That’s the fourth weekly decline in a row, and the lowest level for the most popular mortgage product since early October of 2024.

Lower rates are helpful for would-be buyers. An analysis from Redfin shows that the typical U.S. monthly payment is $2,556, barely any higher than it was a year ago. Compared to one month ago, when rates hovered around 6.4%, buyers have gained $9,500 in purchasing power, the brokerage reckons.

Average long-term mortgage rate drops to lowest level in more than a year

The average rate on a 30-year U.S. mortgage fell this week to its lowest level in more than a year, extending a recent trend that’s helped give lagging U.S. home sales a boost.

The average long-term mortgage rate fell to 6.19% from 6.27% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.54%.

This is the third straight weekly decline and it brings the average rate to its lowest level since Oct. 3, 2024, when it was 6.12%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week. The average rate dropped to 5.44% from 5.52% last week. A year ago, it was 5.71%, Freddie Mac said.

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