U.S. Mortgage Rates Fall to 6.81%, 3rd Consecutive Weekly Decline/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The average 30-year mortgage rate has dropped to 6.81%, marking the third consecutive weekly decline. Falling Treasury yields and stable economic expectations are contributing factors. While rates remain high, increased inventory is helping buyers regain leverage.
Mortgage Rate Trends + Quick Looks:
- Average 30-year mortgage falls to 6.81% this week.
- It’s the third straight weekly rate drop, easing costs.
- 15-year fixed rate also falls to 5.96%.
- Bond market and Treasury yields driving lower rates.
- Sales of existing homes remain weak, builders cut prices.
- Homebuyer incentives like rate buydowns still common.
- Inventory is rising, giving buyers more leverage.
U.S. Mortgage Rates Fall to 6.81%, 3rd Consecutive Weekly Decline
Deep Look
The average long-term U.S. mortgage rate dipped again this week, continuing a three-week decline that offers modest relief to homebuyers facing one of the least affordable housing markets in decades.
Mortgage buyer Freddie Mac reported Wednesday that the average rate for a 30-year fixed loan slipped to 6.81%, down from 6.84% the previous week. This time last year, the average rate hovered slightly higher at 6.87%. Similarly, the average 15-year mortgage rate eased to 5.96%, a small but meaningful decrease from 5.97% the week prior and down from 6.13% a year ago.
The dip is largely attributed to a continued decline in bond yields, especially the 10-year Treasury yield, which dropped to 4.35% by midday Wednesday. That’s a notable fall from the 4.58% seen just weeks ago. The yield on the 10-year Treasury is a benchmark that mortgage lenders closely follow when determining loan rates.
Although the latest mortgage rate sits below the mid-January peak of just above 7%, it still remains significantly higher than the ultra-low levels seen during the COVID-19 pandemic. The lowest point for 2025 so far was 6.62%, reached briefly in early April.
These elevated borrowing costs have had a pronounced effect on the housing market. Monthly payments for homebuyers remain substantially higher, which has reduced purchasing power and contributed to a prolonged sales slump that began in 2022.
Sales of previously owned homes fell last year to their lowest level since the mid-1990s, and this year’s spring buying season showed little improvement. New-home construction also fell short of expectations last month, signaling continued caution among builders.
A separate report released Wednesday showed that homebuilder confidence has also taken a hit. A key sentiment index dropped to its third-lowest level since 2012, driven by weaker expectations for future sales.
To stimulate demand, many builders are rolling out incentives such as mortgage rate buydowns or direct price cuts, according to the National Association of Home Builders. These incentives have become increasingly necessary in a market where affordability remains a top concern for buyers.
Still, there are bright spots for those able to navigate current market conditions. Inventory is increasing, and homes are staying on the market longer, which gives buyers more options and negotiating power.
“While home prices remain elevated, market conditions are gradually tilting in favor of buyers, thanks to rising inventory, longer time-on-market, and climbing price reductions,” noted Hannah Jones, a senior economic research analyst at Realtor.com.
Looking ahead, economists expect mortgage rates to remain relatively stable in the near term, staying within a 6% to 7% range throughout 2025. While not ideal, these levels offer predictability and allow buyers to better plan financially amid ongoing market volatility.
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