The average interest rate for 30-year fixed-rate mortgages in the United States has dropped to the lowest level in nearly 10 months, potentially boosting the purchasing power of potential homebuyers and injecting vitality into the stagnant real estate market.
According to Freddie Mac, a major mortgage financing institution in the United States, the average interest rate for 30-year fixed-rate mortgages fell to 6.58% for the week ending on August 13, lower than the previous week’s 6.63% and the lowest level since October 24, 2024, when it was 6.54%.
This marks the fourth consecutive week of decline for this long-term average rate. A year ago, the average rate was 6.49%.
The cost of borrowing for 15-year fixed-rate mortgages has also decreased, making this type of loan more attractive to homeowners looking to refinance. According to Freddie Mac, the average rate for these loans dropped from 5.75% last week to 5.71% this week, though still higher than 5.66% a year ago.
Since the beginning of 2022, higher mortgage rates have been a major factor contributing to the sluggishness in the U.S. housing market, as rates started to rise from historic lows reached during the pandemic. Last year, home sales in the U.S. dropped to the lowest level in nearly 30 years.
Mortgage rates are influenced by several factors, including the Federal Reserve’s rate policies and investors’ expectations regarding the economy and inflation.
A key reference point is the 10-year U.S. Treasury bond yield, which mortgage lenders use as one of the pricing benchmarks for home loans. As of Thursday midday, the yield stood at 4.29%, slightly higher than the previous day’s 4.24% closing. The yield has been decreasing in recent weeks due to weaker-than-expected U.S. employment data in July, leading to speculation that the Federal Reserve may lower its key short-term rate in September.
Throughout most of 2025, the average interest rate for 30-year mortgages in the U.S. has fluctuated between 6.6% and 6.8%.
Economists generally expect the average rate for 30-year mortgages to remain above 6% this year. Real estate website Realtor.com and mortgage financing giant Fannie Mae recently predicted that by the end of this year, the average rate would drop to around 6.4%.
However, this level of interest rates may not be enough to bring about significant changes in home sales. While trends such as an increase in listings and decreasing listing prices in the southern and western regions of the U.S. favor buyers, affordability remains a major obstacle for many potential homebuyers.
The national rate of home price growth has slowed down, but in June, the median sales price of existing homes in the U.S. hit a record high of $435,300.
(Reference: The Associated Press)