"The benchmark 30-year fixed rate mortgage rate fell to 5.98% from 6.01% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.76%. The average rate has been hovering close to 6% this year. This latest dip, its third decline in a row, brings it closer to its lowest level since Sept. 8, 2022, when it was 5.89%."
"Mortgage rates are influenced by several factors, from the Federal Reserve's interest rate policy decisions to bond market investors' expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans."
"Mortgage rates have been trending lower for months, helping drive a pickup in home sales the last four months of 2025, but not enough to lift the housing market out of its slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows."
The 30-year fixed rate mortgage averaged 5.98% this week, marking its third consecutive decline and dropping below 6% for the first time since late 2022. This represents a significant decrease from 6.76% one year ago. Mortgage rates are influenced by Federal Reserve policy and bond market expectations, generally tracking the 10-year Treasury yield, which stood at 4.02%. While lower rates have contributed to increased home sales in recent months, the housing market remains depressed compared to pre-2022 levels. Previously occupied home sales remain at 30-year lows, and recent monthly sales posted their biggest drop in nearly four years despite more favorable mortgage rates.
Read at Fast Company
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