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2w ago

Mortgage Rates Slide to 11-Month Lows as Weak Jobs Data Triggers Bond Rally

Markets widely expect a September Fed cut, yet forecasters and lenders caution that cheaper borrowing may not quickly revive homebuying.

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High mortgage rates and home prices sidelined homebuyers for years.
Construction workers build homes at a new housing development on Aug. 8, 2025, in Henderson, Nev.

Overview

  • Freddie Mac reported the 30-year average at 6.50%, the lowest since October 2024, down from 6.56% a week earlier.
  • After the BLS showed just 22,000 August job gains and unemployment at 4.3%, Mortgage News Daily tracked a one-day drop to 6.29%, the biggest daily fall in over a year.
  • Fixed mortgage pricing is following declines in 10-year Treasury yields and investor demand for mortgage-backed securities rather than the Fed’s policy rate.
  • Despite lower rates, purchase applications were 6.6% below four weeks earlier, reflecting persistent affordability challenges and high home prices.
  • Lenders are trimming quotes and modestly adding staff ahead of a likely Sept. 17 rate cut, while major forecasts still see averages holding in the mid-6% range into year-end.