Average rate on a US 30-year mortgage holds steady at 6.76%, not far from highest levels this year

ALEX VEIGA

Thu, May 8, 2025, 9:01 AM 2 min read

The mean complaint connected a 30-year owe successful the U.S. held dependable this week, not acold from its highest levels this year, but beneath wherever it was a twelvemonth ago.

The complaint stood astatine 6.76% for the 2nd week successful a row, owe purchaser Freddie Mac said Thursday. A twelvemonth ago, the complaint averaged 7.09%.

Borrowing costs connected 15-year fixed-rate mortgages, fashionable with homeowners refinancing their location loans, eased. The mean complaint dropped to 5.89% from 5.92% past week. It’s down from 6.38% a twelvemonth ago, Freddie Mac said.

Mortgage rates are influenced by respective factors, including planetary request for U.S. Treasurys, the Federal Reserve’s involvement complaint argumentation decisions and enslaved marketplace investors’ expectations astir the system and inflation.

After climbing to a conscionable supra 7% successful mid-January, the mean complaint connected a 30-year owe has remained supra 6.62%, wherever it was conscionable 4 weeks ago. It past spiked supra 6.8% successful the pursuing 2 weeks and eased past week to 6.76%.

The caller swings successful owe rates bespeak volatility successful the 10-year Treasury yield, which lenders usage arsenic a usher to pricing location loans.

The yield, which had mostly fallen aft climbing to astir 4.8% successful mid-January, surged past period to 4.5% amid a sell-off successful authorities bonds triggered by capitalist anxiousness implicit the Trump administration’s trade war.

The 10-year Treasury output was astatine 4.33% successful midday trading Thursday, up from 4.26% precocious Wednesday.

Elevated owe rates and rising location prices stay affordability hurdles for galore would-be homebuyers. It’s wherefore the outpouring homebuying play is disconnected to a lackluster start. Sales of antecedently occupied U.S. homes fell successful March, posting the largest monthly driblet since November 2022.