Mortgage Rates Fall To Lowest Levels In 2025

• Freddie Mac noted that the 30-year fixed-rate mortgage fell to 6.19% as of Thursday, down from 6.27% last week.
• A year ago, the 30-year FRM averaged 7%, according to the government-sponsored enterprise.
• Sales of previously owned homes rose to a seven-month high, according to a CNBC report citing data from the National Association of Realtors.

U.S. mortgage rates have fallen to their lowest levels in 2025, according to Freddie Mac, with buyers looking to take advantage of the decline.

Freddie Mac noted that the 30-year fixed-rate mortgage (FRM) fell to 6.19% as of Thursday, down from 6.27% last week. A year ago, the 30-year FRM averaged 7%, according to the government-sponsored enterprise.

“At the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower. This dynamic has kept refinancings high, accounting for more than half of all mortgage activity for the sixth consecutive week,” Freddie Mac stated in its latest report.

Previously Owned Home Sales Rise

According to a CNBC report citing data from the National Association of Realtors, sales of previously owned homes rose to a seven-month high, rising 1.5% in September from August, to a seasonally adjusted annualized rate of 4.06 million units.

“As anticipated, falling mortgage rates are lifting home sales. Improving housing affordability is also contributing to the increase in sales.”

— Lawrence Yun, Chief Economist, National Association of Realtors

Meanwhile, U.S. equities gained in Thursday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.52%, the Invesco QQQ Trust ETF (QQQ) soared 0.74%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.26%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘extremely bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was down by 0.28% at the time of writing.

Housing Inventory At 5-Year High

Yun added that housing inventory is currently at a five-year high, but noted that it continues to persist below pre-COVID levels, according to the report. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth,” Yun added.

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

Also See: Apple Loses UK Lawsuit Accusing It Of Abusing Its Dominant Position Over App Store Commissions: Report

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