Freddie Mac says rates slide, offering a glimmer of relief for buyers
United States mortgage rates edged lower this week, with the average 30-year fixed rate falling to 6.3%, according to Freddie Mac’s latest Primary Mortgage Market Survey.
That marks the lowest level for home loan borrowing costs in about a year, offering a glimmer of relief for buyers navigating persistent affordability challenges and economic uncertainty.
Freddie Mac reported Thursday that the 30-year fixed rate declined from 6.34% last week.
“Over the last few weeks, mortgage rates have settled in at their lowest level in about a year,” Sam Khater, Freddie's chief economist, said.
“There is growing evidence that homebuyers are digesting these lower rates and gradually are willing to move forward with buying a home, which is boosting purchase activity.”
The 15-year fixed-rate mortgage, a popular option for refinancing, also eased to 5.53% from 5.55% last week. A year ago, the 30-year and 15-year rates averaged 6.32% and 5.41%, respectively.
As mortgage rates edge higher post-Fed cut, BTIG’s Eric Hagen says the “magic number” for renewed activity could be around 5%. He points to hybrid ARMs as a rising affordability tool amid rate uncertainty.https://t.co/pUMS1SEWhm
— Mortgage Professional America Magazine (@MPAMagazineUS) October 9, 2025
Market factors and Fed policy shape outlook
Mortgage rates are shaped by a web of influences, from the Federal Reserve’s interest rate decisions to investor sentiment in the bond market. The 10-year Treasury yield, a key benchmark for mortgage pricing, hovered at 4.13% midday Thursday, up slightly from last week.
“There’s this market perception that the Fed controls mortgage rates. The Fed does not control mortgage rates. The Fed merely sets short term rates. The market controls longer rates,” Glen Weinberg, managing partner at Fairview Commercial Lending, told Mortgage Professional America.
“Regardless of how much they cut rates, because of inflation and market expectations, mortgage rates are going to stay high—which is going to continue to impact the real estate market.”
While the Fed’s recent rate cut helped nudge mortgage rates downward, future moves remain uncertain. Fed Chair Jerome Powell has signaled caution on further cuts, even as some committee members advocate for a more aggressive approach.
New York Federal Reserve president John Williams indicated support for additional interest rate cuts this year, citing mounting risks in the US labor market and a less severe inflation outlook than previously feared.
Homebuyers remain wary amid uncertainty
Despite the recent dip in rates, many prospective buyers remain on the sidelines.
“A government shutdown doesn’t just stop paychecks for some federal employees – it shakes the financial confidence of Americans,” said Daryl Fairweather, chief economist at Redfin.
“People across the country are taking in the news and thinking, ‘we’ve faced inflation, tariffs, job losses, a volatile stock market, and now a government shutdown–what’s next?’”
Moreover, vast majority of Americans are still convinced it’s a bad time to buy a home, according to the latest Fannie Mae National Housing Survey. Seventy-three percent of respondents said September was a bad time to buy a home, up from 72% the previous month.
However, for clients who are ready, with good credit, a down payment, and a housing market that meets their needs as well as a long-term horizon, Brian Peardon, private wealth advisor at BridgePort Financial Solutions says he leans toward buying now with hedges like rate locks and refinancing optionality for a mortgage.
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