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5d ago

Mortgage Rates Edge Back to 6.3% as Refi Boomlet Emerges

Bond‑market repricing after the Fed’s cut is keeping borrowing costs in the mid‑6% range.

Mortgage rates are displayed at a credit union in Wheeling, Ill., Tuesday, Sept. 23, 2025. (AP Photo/Nam Y. Huh)

Overview

  • Freddie Mac’s 30‑year average rose to 6.30% from 6.26% last week, with the 15‑year fixed up to 5.49%.
  • Refinance activity has jumped, with the MBA Refinance Index at 1,597 for the week of Sept. 12, the highest September reading in years.
  • The surge has limits because a large share of borrowers already hold sub‑5% mortgages, according to FHFA data showing 71.3% below 5.0%.
  • Rates track moves in the 10‑year Treasury and elevated mortgage‑backed security spreads, which remain wide given sticky inflation and reduced Fed MBS demand.
  • Realtor.com expects metros with many mortgaged owners—such as Washington, D.C., Denver, Virginia Beach and Raleigh—to see the biggest response, while forecasts from major groups point to mid‑6% rates through late 2025 with modest easing possible into 2026.