Overview
- Freddie Mac’s survey shows the average 30-year fixed mortgage at 6.22% and the 15-year at 5.54%, both slightly higher week over week yet below year-to-date averages.
- The Federal Reserve lowered the federal funds rate to 3.50%–3.75% and signaled the possibility of another cut in 2026, but mortgage rates respond mainly to Treasury yields rather than the Fed’s short-term rate.
- Markets registered a muted response to the Fed move, with the 10-year Treasury yield slipping toward the low 4% range as mortgage rates held near their lowest levels in more than a year.
- Housing activity remains constrained by the ‘lock‑in’ effect Powell highlighted, and forecasts from Realtor.com and others see only gradual affordability gains as rates stay in the low‑6% range into 2026.
- Adjustable‑rate mortgages continue to price below comparable fixed loans by roughly 0.3–0.5 percentage points, but experts caution about reset risks, lifetime caps, and potential prepayment penalties.