Mortgage rates have fallen to their lowest level in 10 months, a development that provides fresh ammunition to President Donald Trump to intensify calls for more aggressive interest rate cuts from the Federal Reserve.
Lower Mortgage Rates Good For Homebuyers?
According to the Primary Mortgage Market Survey released Thursday by Freddie Mac (OTC:FMCC), the average rate on a 30-year fixed-rate mortgage (FRM) now stands at 6.58%, down from 6.63% the previous week.
The 15-year FRM also retreated to 5.71%. These figures represent the lowest point for mortgage rates since October 2024, signaling a potential easing in borrowing costs that have kept the housing market constrained.
The decline offers some relief to prospective homebuyers, though it also fuels debate over the potential for reigniting housing price inflation.
While the recent dip is notable, Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, provided broader context in a post on X. She pointed out that while the 30-year rate “has fallen to 6.67%… it is almost unchanged year/year,” highlighting the prolonged period …