The average 30-year fixed mortgage rate fell to 6.65% this week from 6.67% last week, mortgage buyer Freddie Mac said Thursday via Associated Press. However, mortgage rates are still higher than they were a year ago. The average 30-year mortgage rate was 6.58% one year ago.
The 15-year fixed mortgage rate also fell slightly this week. It dropped to 5.95% from 5.96% last week. Even the 15-year rate is higher than last year. A year ago, the average 15-year fixed mortgage rate was 5.69%, according to the Associated Press. The recent fall in rates has not changed the bigger picture for homebuyers. Mortgage rates have mostly moved higher this year, making it more expensive for Americans to borrow money to buy homes.
The bond market has faced pressure this year because of worries about inflation. The US war with Iran has pushed crude oil prices higher at times, increasing concerns that inflation could become stronger.
Higher oil prices can make inflation worries worse. Investors have therefore demanded higher yields on long-term government bonds, which has also kept mortgage rates elevated. Oil prices have eased recently, but bond yields remain much higher than before the conflict began. This has kept pressure on mortgage rates even as some inflation concerns have cooled.
The 10-year Treasury yield has risen sharply since late February. It was around 3.97% in late February before the war, but stood at 4.71% as of midday Thursday, according to the Associated Press. Rising government debt is another concern for bond investors. Investors have been worried about the huge amount of US government debt, along with inflation and other economic risks.
The Treasury Department has responded by increasing its government bond buybacks. The department said Wednesday that it would at least double the amount of US government bonds it plans to buy back over the next few months.
The bond-buyback plan helped push Treasury yields lower. The move came after the 10-year Treasury yield reached its highest level in more than a year, according to the Associated Press. Treasury Secretary Scott Bessent has been involved in the government’s bond-buyback effort. The buybacks are aimed at helping the Treasury manage the government bond market, although mortgage rates remain elevated.
Sales of previously owned homes slowed again, showing that high mortgage rates are still hurting the US housing market. Friday’s drop in mortgage rates is a small relief for homebuyers, but borrowing money is still expensive.
Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news. She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs. Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events. She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard. Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives. For her, both journalism and art are ways to understand the world and tell stories that matter.Read More
