Current Mortgage Rates: Home Loans Get Cheaper, Here’s What You Need To Know

Current mortgage rates in the United States are now down to a low of almost a year, according to data from some of the biggest mortgage lenders in the U.S.

Data from Freddie Mac shows that the average rate for a 30-year fixed-rate mortgage (FRM) fell to 6.35% as of Friday, down from 6.5% last week. The last time the mortgage rate for a 30-year home loan was lower than 6.35% was on October 10, 2024, according to data from the Federal Bank of St. Louis.

U.S. Bank data shows that the mortgage rate for a 30-year FRM starts at 5.99%. Similarly, Federal Housing Administration (FHA) loans for a 30-year term start at 6.125%, according to the lender.

Data from Bank of America shows that the refinancing rate for a 30-year fixed mortgage is now down to 6.25% for a current loan balance of $200,000.

“Mortgage rates are headed in the right direction and homebuyers have noticed, as purchase applications reached the highest year-over-year growth rate in more than four years,” said Freddie Mac’s chief economist, Sam Khater.

On Wednesday, data from the Mortgage Bankers Association showed that the mortgage rates fell by 15 basis points to an 11-month low to 6.49% for the week ended September 5. It added that the interest rates on 15-year and five-year mortgages were down to their lowest levels in nearly a year.

Meanwhile, U.S. equities edged up in Friday’s pre-market session. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.03%, while the Invesco QQQ Trust (QQQ) gained 0.19%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

Also See: Dow Futures Decline After Rallying This Week: MSFT, WBD, ADBE, RH Among Stocks To Watch

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