Mortgage Rates Drop to 6.09% According to Freddie Mac
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Mortgage rates have seen a slight decline this week, according to Freddie Mac’s latest report released on Thursday.
The average rate for the benchmark 30-year fixed mortgage dropped to 6.09%, down from last week’s 6.11%. This marks a significant change from the average rate of 6.87% recorded a year ago.
The average rate on the 30-year fixed mortgage fell to 6.09% this week, Freddie Mac said. (Ty Wright/Bloomberg via Getty Images)
HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE
According to Sam Khater, Freddie Mac’s chief economist, “Bolstered by strong economic growth, a solid labor market, and mortgage rates at three-year lows, housing affordability continues to measurably improve.” He noted that these factors have attracted many prospective homebuyers, resulting in a rise in purchase application activity compared to last year.
The average rate for a 15-year fixed mortgage also saw a decrease, falling to 5.44% from last week’s 5.5%.
Mortgage rates are influenced by various factors, including the Federal Reserve’s policies and geopolitical events. While these rates do not directly correlate with the Fed’s interest rate decisions, they tend to follow the trends of the 10-year Treasury yield, which was around 4.1% as of Thursday afternoon.
Realtor.com Economist Jiayi Xu commented, “Mortgage rates have lingered in the low-6% range for weeks, allowing prepared buyers and sellers to act, but likely not low enough to attract the next wave.” Despite a year-over-year increase in active listings in January, inventory growth has slowed for the ninth consecutive month, leaving total supply approximately 17.2% below pre-pandemic levels.
THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS
Xu added, “In short, while the market remains stable, a larger drop in rates will be necessary to attract new buyers and sellers and truly reignite the housing market.”
The average rate on the 15-year mortgage fell to 5.44% this week. (David Paul Morris/Bloomberg via Getty Images)
HOMEBUILDERS REPORTEDLY DEVELOPING ‘TRUMP HOMES’ PROGRAM TO IMPROVE AFFORDABILITY
In January, U.S. existing home sales plummeted to their lowest level in over two years, primarily due to dwindling inventory that has driven up house prices.
Home sales fell by 8.4% last month, reaching a seasonally adjusted annual rate of 3.91 million units, the lowest since December 2023, as reported by the National Association of Realtors. Economists surveyed by Reuters had anticipated a decline to a rate of 4.18 million units.
These sales figures likely reflect contracts signed in November and December, unaffected by the winter storms that impacted many regions in January. Year-over-year, home sales decreased by 4.4%.
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Reuters contributed to this report.
FOX Business’ Jeff Flock joins ‘Mornings with Maria’ live from Austin, Texas, showcasing 3D-printed homes.
Mortgage rates have seen a slight decline this week, according to Freddie Mac’s latest report released on Thursday.
The average rate for the benchmark 30-year fixed mortgage dropped to 6.09%, down from last week’s 6.11%. This marks a significant change from the average rate of 6.87% recorded a year ago.
The average rate on the 30-year fixed mortgage fell to 6.09% this week, Freddie Mac said. (Ty Wright/Bloomberg via Getty Images)
HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE
According to Sam Khater, Freddie Mac’s chief economist, “Bolstered by strong economic growth, a solid labor market, and mortgage rates at three-year lows, housing affordability continues to measurably improve.” He noted that these factors have attracted many prospective homebuyers, resulting in a rise in purchase application activity compared to last year.
The average rate for a 15-year fixed mortgage also saw a decrease, falling to 5.44% from last week’s 5.5%.
Mortgage rates are influenced by various factors, including the Federal Reserve’s policies and geopolitical events. While these rates do not directly correlate with the Fed’s interest rate decisions, they tend to follow the trends of the 10-year Treasury yield, which was around 4.1% as of Thursday afternoon.
Realtor.com Economist Jiayi Xu commented, “Mortgage rates have lingered in the low-6% range for weeks, allowing prepared buyers and sellers to act, but likely not low enough to attract the next wave.” Despite a year-over-year increase in active listings in January, inventory growth has slowed for the ninth consecutive month, leaving total supply approximately 17.2% below pre-pandemic levels.
THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS
Xu added, “In short, while the market remains stable, a larger drop in rates will be necessary to attract new buyers and sellers and truly reignite the housing market.”
The average rate on the 15-year mortgage fell to 5.44% this week. (David Paul Morris/Bloomberg via Getty Images)
HOMEBUILDERS REPORTEDLY DEVELOPING ‘TRUMP HOMES’ PROGRAM TO IMPROVE AFFORDABILITY
In January, U.S. existing home sales plummeted to their lowest level in over two years, primarily due to dwindling inventory that has driven up house prices.
Home sales fell by 8.4% last month, reaching a seasonally adjusted annual rate of 3.91 million units, the lowest since December 2023, as reported by the National Association of Realtors. Economists surveyed by Reuters had anticipated a decline to a rate of 4.18 million units.
These sales figures likely reflect contracts signed in November and December, unaffected by the winter storms that impacted many regions in January. Year-over-year, home sales decreased by 4.4%.
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Reuters contributed to this report.
