The 30-year average fell again, offering some mortgage market relief
United States mortgage rates slipped for the second consecutive week, with the average 30-year fixed-rate mortgage (FRM) falling to 6.27% as of October 16, 2025, according to Freddie Mac’s latest Primary Mortgage Market Survey.
The move brings rates just above their lowest point this year, offering a glimmer of relief for both homebuyers and homeowners looking to refinance.
“Mortgage rates inched down this week and have held relatively steady over the past several weeks,” said Sam Khater, chief economist at Freddie Mac.
“Importantly, homeowners have noticed these consistently lower rates, driving an uptick in refinance activity. Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home.”
The 30-year FRM averaged 6.27%, down from 6.30% last week and 6.44% a year ago. The 15-year FRM, popular among refinancing homeowners, also eased to 5.52% from 5.53% last week. A year ago, the 15-year FRM stood at 5.63%.
Freddie Mac’s data show that borrowing costs have hovered near their lowest levels since early October 2024, after a string of declines.
Mortgage rates are closely tied to the 10-year Treasury yield, which dropped to 4.02% from 4.14% last week.
The Federal Reserve’s recent decision to cut its main interest rate for the first time in a year has contributed to the downward trend, but policymakers have signaled that future moves will depend on inflation and labor market data.
Now, Federal Reserve governor Stephen Miran said that he would favor a 50-basis-point reduction at the upcoming policy meeting, citing heightened downside risks from trade tensions and a restrictive policy stance.
Fed Chair Jerome Powell, in a speech this week, pointed to “growing signs of weakness in the labor market” and left the door open to another rate cut this month.
Although Fed rate cuts don’t directly change mortgage rates, talk of big cuts has influenced both homebuyers and people considering refinancing, said Amir Nurani, broker-owner at Left Coast Leaders in California.
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