Freddie Mac reports 30-year mortgage rate slips to 6.65%

Freddie Mac said Thursday that the average rate on the benchmark 30-year fixed mortgage declined to 6.65%, a slight drop from 6.67% the previous week. The rate a year ago stood at 6.58%. The average 15-year fixed mortgage rate also edged down to 5.95% from 5.96%.

"With a dip in rates providing modest relief for homebuyers, it’s important to remember borrowers can potentially save thousands by shopping around for the best mortgage rate," said Sam Khater, Freddie Mac's chief economist. Mortgage rates are influenced by factors such as the Federal Reserve’s policy stance and geopolitical developments, though they are not set directly by the Fed. They tend to follow the 10-year Treasury yield, which was around 4.7% on Thursday. "Today's print is best understood as the base level from which mortgage rates may push higher next week amid market volatility," said Jake Krimmel, senior economist at Realtor.com. He noted that the 30-year Treasury reached a near-20-year high, prompting the Treasury Department to intervene by buying back billions of dollars of debt. U.S. Treasury yields have risen recently, partly due to the federal government's projected $2.1 trillion budget deficit for the current fiscal year, according to the Congressional Budget Office. Recent Treasury auctions saw the 10-year note clear at 4.683%, the highest in 19 years, and the 30-year bond at 5.216%, a 25-year peak.