Average 30-year fixed rates are on the up again after a prolonged dip
A steady weeks-long decline in US mortgage rates ended Thursday as the average 30-year fixed rate moved higher for the first time since July.
Mortgage buyer Freddie Mac said the average 30-year rate increased to 6.3% for the week ending September 25, up from 6.26% a week prior, as the 15-year rate also jumped – to 5.49%, from 5.41%.
Although 30- and 15-year rates are now higher than the same time last year, they’re still both below the 52-week average, and the weekly increase failed to dent purchase and refinance activity.
“Housing market activity continues to hold up with purchase and refinance applications increasing by 18% and 42%, respectively, compared to the same time last year,” Freddie Mac said.
Mortgage rates had been on a steady downward slide in the final weeks of summer as financial market expectations of a Federal Reserve interest rate cut grew. That descent took the 30-year average to their lowest level since October 2024.
The central bank trimmed its benchmark rate by 25 basis points last week, although mortgage rates inched upwards after that decision as bond yields ticked higher.
While speculation is continuing about possible further Fed cuts throughout the remainder of this year and 2026, there’s little prospect of mortgage rates nosediving anytime soon.
Fannie Mae believes 30-year fixed mortgage rates will average 6.4% by the end of this year, falling to 5.9% by the end of 2026.
But it also sees a possible refinancing spike on the way, forecasting refis’ market share to increase from 26% in 2025 to 35% next year.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
