U.S. Mortgage Rates Decline to 6.50%, Lowest Since October 2024

The average 30-year fixed-rate mortgage in the United States has declined to 6.50%, marking the lowest level since October 2024, according to Freddie Mac's latest Primary Mortgage Market Survey. This represents a decrease from 6.56% the previous week.

"Mortgage rates continue to trend down, increasing optimism for new buyers and current owners alike," said Sam Khater, Freddie Mac’s Chief Economist.

Despite the drop in rates, the housing market remains sluggish. Redfin reports that the median U.S. monthly housing payment is now $2,593, the lowest since January. However, the decrease in mortgage rates has only led to a "trickle" of new homebuyers entering the market.

Redfin economists caution that mortgage rates have already factored in a 25 basis point rate cut anticipated at the upcoming Federal Open Market Committee meeting. Additionally, a stronger-than-expected jobs report could potentially lead to higher mortgage rates.

Housing affordability continues to be a significant concern, with the median home sale price at $410,800, remaining near all-time highs.