Mortgage Rates Ease for Second Consecutive Week

Rates Continue to Trend Down

Mortgage rates fell for the second straight week, offering a modest boost for prospective homebuyers and those considering refinancing. According to Freddie Mac’s Primary Mortgage Market Survey released Thursday, the average rate on a 30-year fixed mortgage dropped to 6.27%, down from 6.3% the previous week. One year ago, the same loan averaged 6.44%.

The 15-year fixed mortgage rate also declined slightly, moving from 5.53% to 5.52%. These back-to-back reductions mark a small but notable easing after months of higher borrowing costs driven by inflation and economic uncertainty.

Refinancing Activity Picks Up

Freddie Mac’s Chief Economist Sam Khater said the recent declines have prompted more homeowners to refinance. “Combined with increased housing inventory and slower house price growth, these rates are creating a more favorable environment for those looking to buy a home,” Khater explained.

Industry analysts say that, while rates remain above pre-pandemic lows, the current dip could give homebuyers some temporary relief as inventory rises and competition cools.

Uncertainty Weighs on Buyers

Despite the lower rates, confidence among potential buyers remains tempered. Realtor.com senior economist Jiayi Xu noted that concerns over the labor market and the ongoing federal government shutdown continue to impact sentiment.

“Nationwide, buying power has declined sharply as home prices and mortgage rates continue to outpace income growth,” Xu said. She added that markets with higher shares of federal workers and contractors could see additional strain as financial uncertainty grows.