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Weekly Mortgage Rate Decline
Mortgage rates dropped this week to the lowest level since September 2022, according to Freddie Mac's latest Primary Mortgage Market Survey released Thursday. The average rate on the benchmark 30-year fixed mortgage fell to 6.01% from last week's 6.09%. One year ago, the average rate on a 30-year loan stood at 6.85%.
The 15-year fixed mortgage rate also declined, falling to 5.35% from last week's reading of 5.44%.
This lower rate environment is not only improving affordability for prospective homebuyers, it’s also strengthening the financial position of homeowners. Over the past year, refinance application activity has more than doubled, enabling many recent buyers to reduce their annual mortgage payments by thousands of dollars.
Factors Influencing Rates
Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Though not directly tied to the Fed's interest rate decisions, they closely track the 10-year Treasury yield, which hovered around 4.08% as of Thursday afternoon. This dip follows a notable slide in the 10-year Treasury yield, which hit its lowest point since late November 2025 after last week’s softer-than-expected CPI reading and a relatively optimistic jobs report.
The lower rates are setting the stage for the spring homebuying season. There is a chance to be nearly a full percentage point lower than that this spring, which would meaningfully boost purchasing power. However, the supply side remains mixed: new construction in 2025 finished behind 2024, and inventory growth has clearly lost steam. If the mortgage lock-in effect doesn’t ease, lower rates could reignite competition in the market and lead to a spike in prices.
