Mortgage rates declined for the first time in weeks, though they are still hovering near 7%, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage fell to 6.84% from last week’s reading of 6.85%.

The average rate on a 30-year loan was 6.95% a year ago.

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“Mortgage rates have moved within a narrow range for the past few months and this week is no different,” said Sam Khater, Freddie Mac’s chief economist. “Rate stability, improving inventory and slower house price growth are an encouraging combination as we celebrate National Homeownership Month.”

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The average rate on the 15-year fixed mortgage slipped to 5.97% from last week’s reading of 5.99%. One year ago, the rate on the 15-year fixed note averaged 6.17%.

A “for sale” sign is posted outside a residential home in the Queen Anne neighborhood of Seattle.

While the average rate on a 30-year note still hovers around 7%, U.S. home listing prices hit an all-time high, signaling a potential shift toward a buyers’ market, according to industry experts.

In total, the value of homes in the U.S. rose 20.3% from a year ago, reaching a record $698 billion, according to a recent report from the real estate firm Redfin. The increase was driven by a combination of growing inventory, slowing demand and rising home-sale prices.

The average rate on a 30-year loan was 6.95% a year ago.

With the number of sellers outpacing buyers, Redfin chief economist Daryl Fairweather told FOX Business that the market is poised to shift over the next couple of months.

“All these homes are listed for really high prices , which is why they are sitting on the market. But buyers can’t afford at these high prices, which is why they’re backing off of the market,” Fairweather said, adding that mortgage rates, insurance costs and property taxes are high. “Buyers just aren’t biting at these prices.”

Original article source: Mortgage rates tick lower for second week in a row

Key takeaways Existing-home sales rose 0.8 percent in May to a seasonally adjusted annual rate of 4.03 million. Sales slowed 0.7 percent from a year ago.

The median existing-home sale price rose 1.3 percent from May 2024 to $422,800, marking the 23rd straight month of year-over-year price increases.

The inventory of unsold existing homes rose 6.2 percent from the previous month to 1.54 million at the end of May, the equivalent of 4.6 months’ supply at the current sales pace.

Existing-home sales remain slow even as home prices set new records. The median home sale price for May was $422,800, the highest May median on record. But May 2025 home sales slowed to an annual pace of just 4.03 million, the slowest number for the month since the dark days of May 2009, the National Association of Realtors (NAR) reports.

NAR Chief Economist Lawrence Yun called the pace of sales “sluggish.” He pointed to affordability and mortgage rates as headwinds. The average 30-year fixed mortgage rate rose from a low of 6.2 percent in September 2024 to above 7 percent in early 2025. It stood at 6.86 percent as of June 18, according to Bankrate’s weekly survey of large lenders.

With home prices historically high, affordability challenges remain daunting for homebuyers. Lower mortgage rates would relieve some of that pain: “The relatively subdued sales are largely due to persistently high mortgage rates,” Yun said. But lower rates also could lure more buyers into the market, further fueling prices.

The fate of the housing market in the coming months will be dictated in part by the direction of mortgage rates. — Mark Hamrick, Bankrate Senior Economic Analyst

“The fate of the housing market in the coming months will be dictated in part by the direction of mortgage rates, as well as the health of the broader economy,” says Mark Hamrick, Bankrate’s senior economic analyst. “The market could benefit from a combination of tailwinds, if they were to develop and are sustained.”

Existing-home sales up from last month but down from last year

The count of existing-home sales incorporates all completed resales, including single-family houses, condos, townhouses and co-ops. According to NAR, the number of sales nationally rose from the previous month to an annual pace of 4.03 million transactions in May.

In May, existing-home sales in the Northeast increased 4.2 percent month-over month to an annual rate of 500,000, up 4.2 percent from a year ago. In the Midwest, sales rose 2.1 percent to an annual rate of 990,000, up 1 percent from a year ago.

Existing-home sales in the South rose 1.7 percent to an annual rate of 1.84 million, down 0.5 percent from last year. The West was the only region that saw a decline, with sales retreating 5.4 percent to an annual rate of 700,000, down 6.7 percent from a year ago.

Days on market

Properties typically stayed on the market for 27 days in May, down from 29 days in April. Selling times are a crucial measure at any time of year, but especially during the peak spring and summer selling seasons.

Home prices still historically high

The nationwide median sale price for existing homes in May was $422,800 — the highest-ever price for the month. While that’s slightly below June 2024’s all-time high of $426,900, it’s still an increase of 1.3 percent from last year. This marks 23 consecutive months of year-over-year price increases.

Regionally, prices were mixed. May’s median price in the Northeast was $513,300, a 7.1 percent increase from a year ago. The median in the Midwest was $326,400, up 3.4 percent year-over-year.

In the South, the median was $367,800, down 0.8 percent from last year. The West continues to have the highest median price by far at $633,500, up 0.5 percent from May 2024.

First-time homebuyers made up 30 percent of sales in May, an improvement over the all-time low of 26 percent in August and September. Cash sales accounted for 27 percent of transactions in May, up from 25 percent in April.

Supply again improves year-over-year

The inventory of unsold existing homes jumped 6.2 percent from the previous month to 1.54 million at the end of May, or the equivalent of 4.6 months’ supply at the current monthly sales pace. That’s a healthy 20.3 percent increase from a year ago. But, while buyers are gaining bargaining power, inventory still remains a bit below the 5 or 6 months typically considered the mark of a balanced market.

“We are still short on inventory,” Yun said. “We know there’s a lot of talk about excess inventory, especially in Texas and Florida.”

Mortgage rates ticked down slightly this week, but lower rates may not be enough to motivate buyers as affordability continues posing challenges.

Key points: New listings are up, but late May saw the biggest slowdown for that time of year in a decade, a Redfin analysis found.

Mortgage rates declined slightly over the last week, but high home prices and economic uncertainty remain big hurdles for buyers.

Only 1.4 million mortgages were secured during the first quarter of 2025 — a large drop from the 4.2 million secured in early 2021, according to an ATTOM report.

Potential home sellers might be starting to get the hint that market demand is lacking this spring as new listings slow more than is typical for this time of year.

New home listings were up 6.3% year-over-year for the past four weeks ending on June 1, according to Redfin’s weekly report — one of the smallest upticks recorded in the past three months. While new listings typically peak in mid-May before dropping off at the end of the month, the report noted that the slowdown in late May was the biggest for that time period in a decade.

Meanwhile, Redfin data indicates new listings are declining year-over-year in 11 of the country’s 50 most populous metro areas. The most significant drops are occurring in San Jose, California, and in four Florida cities: Orlando, Fort Lauderdale, Tampa and West Palm Beach.

The explanation for why the market is stuck remains the same: Elevated mortgage rates, high home prices and economic uncertainty are keeping buyers away.

Rates dip slightly

The 30-year fixed-rate mortgage ticked down this week, averaging 6.85% as of June 5 compared to 6.89% one week earlier, according to Freddie Mac. The current rate remains in the neighborhood of last year’s average of 6.99%, a time when the market was similarly sluggish.

At the National Association of Realtors’ mid-year legislative meetings this week, NAR Chief Economist Lawrence Yun described mortgage rates as “the magic bullet” that could energize home sales. But there are other factors holding buyers back, according to Bright MLS Chief Economist Lisa Sturtevant, who noted that the monthly payment for a median priced home is nearly double what it was in 2019.

“Some analysts are saying that to get the sluggish housing market moving, all we need is for mortgage rates to fall,” Sturtevant said. “But if home prices continue to rise, a drop in interest rates is not going to make much difference to a typical homebuyer. And a drop in rates certainly won’t make much of a dent in affordability.”

Mortgage applications tick down

Applications for mortgages have slowed in the last week, according to the Mortgage Bankers Association, with overall applications down 3.9% for the week ending on May 30 as the seasonally adjusted purchase index dropped 4%. But purchase applications are still running 18% ahead of this time last year, MBA Vice President and Deputy Chief Economist Joel Kan noted.

Meanwhile, the overall number of mortgages secured is a shadow of what it was a few years ago. A new report from ATTOM showed that 1.4 million mortgages were secured in the first quarter of 2025, down 14% from the fourth quarter of 2024. In comparison, 4.2 million mortgages were secured in one quarter in early 2021.

“The red-hot housing market we’ve seen over the last few years meant that most home loans were going toward new purchases, but that appears to be changing,” ATTOM CEO Rob Barber said in a news release. “Rather than borrowing money to buy a new property, the data shows homeowners are increasingly looking to restructure their existing mortgages or borrow equity from their homes to cover other expenses.”

Another market headwind: Tariff talks

Uncertainty about tariffs continues to impact the housing market. The Trump administration’s latest move increasing tariffs on imported aluminum and steel from 25-50% is expected to raise the costs of key construction materials, further hurting affordability, according to Hannah Jones, a senior economic research analyst at Realtor.com.

“The ongoing trade war and general economic uncertainty continues to cast a shadow over both consumer and builder sentiment, with new construction activity slowing as builders brace for higher prices and weaker demand,” Jones said.

Luxury home prices rise despite sluggish sales

That economic uncertainty appears to be spilling into the luxury home market, according to a Zillow report. In April, 12% fewer high-end homes went under contract compared to March, and there was also a 5% drop in new listings from March to April.

Even so, prices are still climbing in the luxury market, with home values up 2.7% year-over-year. The typical luxury home is worth about $1.8 million nationwide, Zillow’s report said, with the range across the U.S. spanning from roughly $835,000 in Buffalo, New York, to nearly $6 million in San Jose.

Continued home price growth is “a promising sign” for potential luxury home sellers, according to Zillow Senior Economist Orphe Divounguy.

“The luxury market is often international, so global economic conditions and stability also play a significant role,” Divounguy added. “As economic conditions begin to stabilize, the luxury housing market could regain some momentum.”

Today’s mortgage rates

Mortgage rates tacked on a few more basis points from yesterday morning, as the average 30-year fixed rate heads into the weekend a shade under 7%.

Today’s market data and economic indicators — namely shrinking Treasury yields and plummeting stocks — provide near-term downward pressure on interest rates.

Current mortgage and refinance rates

Program Mortgage Rate APR* Change Conventional 30-year fixed Conventional 30-year fixed 6.822 % 6.879 % -0.06 Conventional 20-year fixed Conventional 20-year fixed 6.546 % 6.642 % Unchanged Conventional 15-year fixed Conventional 15-year fixed 6.053 % 6.138 % -0.03 Conventional 10-year fixed Conventional 10-year fixed 5.953 % 6.021 % -0.02 30-year fixed FHA 30-year fixed FHA 6.877 % 6.931 % +0.02 30-year fixed VA 30-year fixed VA 7.039 % 7.083 % +0.01 5/1 ARM Conventional 5/1 ARM Conventional 5.999 % 6.498 % -0.04 Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.

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30-year fixed rate mortgage

At the time this was published, the average 30-year fixed mortgage rate reached 6.96%.

The average 30-year fixed rate mortgage (FRM) hit a record weekly low of 2.65% on Jan. 7, 2021, and a record weekly high of 8.89% on Dec. 16, 1994, according to Freddie Mac.

A 30-year FRM gives borrowers an affordable option but you pay more interest over the life of the loan compared to shorter mortgages.

15-year fixed rate mortgage

Today, the average 15-year fixed mortgage rate went to 6.12%.

The average 15-year FRM hit a record weekly low of 2.1% on July 29, 2021, and a record weekly high of 18.63% on Sep. 10, 1981, according to Freddie Mac.

The 15-year FRM offers borrowers a briefer term with less accrued interest, but the monthly payments will be much higher.

5/1 adjustable-rate mortgage

This morning’s 5/1 adjustable rate mortgage averaged 6.13%.

Adjustable-rate mortgages (ARMs) typically have lower initial interest rates compared to fixed loans. Once that initial period ends, the interest rate adjusts to the current market conditions. In this case, the initial period is five years and the adjustments are up to once every year. Homeowners with shorter term lending plans tend to see these as advantageous.

Market data affecting today’s mortgage rates

Here’s a snapshot of the state of play as this article was published. The data mostly compares to roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:

The yield on 10-year Treasury notes decreased to 4.522% from 4.592%. ( Good for mortgage rates .) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields

decreased to 4.522% from 4.592%. ( .) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields Major stock indexes all fell this morning. ( Good for mortgage rates .) When investors buy shares, they often sell bonds, pushing those prices down and increasing yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship

all fell this morning. ( .) When investors buy shares, they often sell bonds, pushing those prices down and increasing yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship Oil prices increased to $61.73 from $61 a barrel. ( Bad for mortgage rates *.) Energy prices play a prominent role in creating inflation and also point to future economic activity

increased to $61.73 from $61 a barrel. ( *.) Energy prices play a prominent role in creating inflation and also point to future economic activity Gold prices increased to $3,357 from $3,299 an ounce. ( Good for mortgage rates *.) It is generally better for rates when gold prices rise and worse when they fall. Because gold tends to rise when investors worry about the economy.

increased to $3,357 from $3,299 an ounce. ( *.) It is generally better for rates when gold prices rise and worse when they fall. Because gold tends to rise when investors worry about the economy. CNN Business Fear & Greed index — decreased to 64 from 67 out of 100. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So, lower readings are often better than higher ones

*A movement of less than $20 on gold prices or 40 cents on oil prices is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.

Caveats about markets and rates

Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.

So, use markets only as a rough guide. Because they have to be exceptionally strong or weak for us to rely on them. But, with that caveat, mortgage rates today might nudge upward or barely budge. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.

What’s driving mortgage rates today?

This week

One economic report comes out and three Federal Reserve executives will speak today.

New home sales grew in April to a seasonally-adjusted annual rate of 743,000 from 670,000 in March and 719,000 the year prior.

“The April new home sales figure appears to be an anomaly, as builder sentiment moved markedly lower in May,” said Buddy Hughes, chairman at the National Association of Home Builders. “A more reliable look would be the year-to-date figures, which show new home sales are down 1.2% on elevated interest rates, ongoing policy uncertainty and rising construction costs.”

At 9:35am ET, Kansas City Fed President Jeff Schmid and St. Louis Fed President Alberto Musalem spoke on a panel and discussed how governmental and tariff uncertainty created the current financial and economic uncertainty.

Lastly, Fed Governor Lisa Cook gives a speech at 12pm ET on financial stability at the seventh annual Women in Macro Conference.

Recent trends

Freddie Mac’s May 22 report put the weekly 30-year fixed mortgage rate average at 6.86%, up five basis points from the previous week. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures. Still, they’re a good way to track trends.

Expert forecasts for mortgage rates

Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.

Here are their quarterly rate forecasts for the 2025.

The numbers in the table below are for 30-year, fixed-rate mortgages. Both Fannie and the MBA updated their forecasts on Apr. 11.

Forecaster Q2/25 Q3/25 Q4/25 Q1/26 Fannie Mae 6.5% 6.3% 6.2% 6.1% MBA 7.0% 6.8% 6.7% 6.6%

In its Mortgage Market Outlook published Jan. 24, Freddie Mac wrote, “our outlook for the U.S. economy in 2025 is positive, though we expect the pace of growth to moderate. In late 2024, the U.S. labor market started showing signs of cooling and we expect that to persist in 2025. Modestly higher unemployment and slower job gains will reduce some of the pressures on inflation.”

Of course, given so many unknowables, these forecasts might be even more speculative than usual. And their past record for accuracy — due to the volatile nature of interest rates — hasn’t been wildly impressive.

Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.

Current mortgage rates methodology

We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Those mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.

Today’s mortgage rates FAQ