In the news dated October 24, 2025, it is reported that the average interest rate for 30-year fixed-rate mortgages in the United States has dropped to the lowest level in over a year. This trend of declining mortgage rates has been boosting the purchasing power of potential buyers and helping to revitalize the sluggish housing market.
According to data released by the U.S. mortgage financing agency Freddie Mac on Thursday, October 23, the average rate for 30-year fixed-rate home mortgages fell to 6.19% in the week ending October 23, down from 6.27% the previous week. This marks the lowest level since October 3, 2024, when it stood at 6.12%.
This is the third consecutive week of decline in this long-term interest rate average. One year ago, during the same week, the average rate was 6.54%.
The cost of borrowing for 15-year fixed-rate mortgages has also decreased, making it a popular choice for homeowners seeking mortgage refinancing. According to Freddie Mac’s data, the average rate for this type of mortgage dropped from 5.52% last week to 5.44% this week. A year ago, the average rate was 5.71%.
Mortgage rates are influenced by various factors, including the Federal Reserve’s interest rate policies, investors’ expectations for the economy and inflation in the bond market. The trend of mortgage rates usually follows the yield on the 10-year Treasury note, which is an important benchmark for lending institutions when pricing mortgages.
As of midday Thursday, the yield on the 10-year Treasury note was 3.99%, a slight increase from around 3.97% the previous week.
Since 2022, mortgage rates began rising from historic lows, and starting in September of that year, the average rate for 30-year fixed-rate mortgages has remained above 6%, keeping the real estate market subdued.
Commenting on the latest trend of declining mortgage rates, Sam Khater, Chief Economist at Freddie Mac, stated in a press release: “At the beginning of 2025, the 30-year fixed-rate mortgage surpassed 7%, and now it hovers nearly 1 percentage point lower.”
Existing home sales in the United States plummeted to the lowest level in nearly 30 years last year, and sales have remained sluggish this year. However, with mortgage rates starting to decline since July, sales picked up pace last month, marking the fastest growth since February.
During a policy meeting held by the Federal Reserve in mid-September, a rate cut decision was made for the first time in a year. According to policymakers at the U.S. central bank, there are expectations for two more rate cuts this year and one in 2026.
While the Federal Reserve does not directly control mortgage rates, its actions in interest rate policies directly impact the 10-year Treasury yield, thereby indirectly affecting the level of mortgage rates.