Homebuyers are getting a bit more relief as mortgage rates continue to slide.
The average 30-year fixed rate fell to 6.5% on Thursday, down from 6.56% the previous week and well below the 2025 peak of 7.04% in January, according to Freddie Mac. Rates have been on a mostly downward trajectory since late May.
Mortgage rates tend to follow the 10-year Treasury yield, which has fallen in recent weeks. Demand for Treasuries has remained relatively stable as the job market shows signs of cooling and the Federal Reserve is expected to cut rates in September. More demand pushes Treasury prices up, which lowers yields and in turn brings mortgage rates down.
“We have seen that the employment sector has weakened, and there is other weaker economic data,” says Melissa Cohn, regional vice president of William Raveis Mortgage. “At the same time, the rate of inflation has remained fairly stable in spite of the impact of tariffs. That is a perfect recipe for lower rates.”
Cohn says “rates don’t fall in a straight line” and “upward bumps” are to be expected as markets respond to economic and political news. Still, the recent decline means homebuyers could save money on monthly homeownership costs.
