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2d ago

U.S. Mortgage Rates Fall to 6.35%, Lowest in Nearly a Year

Weaker jobs data lowered Treasury yields, setting up markets for a likely Federal Reserve rate cut next week.

Mortgage rates fell to the lowest level since October 2024, according to data released Thursday by Freddie Mac.
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Overview

  • The average 30-year fixed mortgage rate dropped to 6.35% from 6.50% last week, while the 15-year fell to 5.5%, according to Freddie Mac.
  • This roughly 15-basis-point weekly decline is the largest in about a year and marks the lowest levels since October 2024.
  • Mortgage applications rose 9.2% last week to the highest index reading in more than three years, with purchase applications up about 7% and refinances up 12%, the MBA reported.
  • The move follows a slide in 10-year Treasury yields after BLS data showed a weaker labor market, including an August payroll gain of 22,000 and sizable downward revisions to prior months.
  • Futures markets largely price a 25-basis-point Fed cut next week, though analysts note rates could bounce after the decision as they did following last September’s cut.