Mortgage rates edge lower

The 30-year mortgage rate dropped to 6.58% this week, the lowest in nearly 10 months, offering limited relief to buyers amid an still tight housing market.

Mortgage rates fall to 6.58 percent marking a ten-month low

The 30-year fixed mortgage rate fell to 6.58 percent this week, the lowest since October, Freddie Mac said. The 15-year fixed rate declined to 5.71 percent. This marks the fourth straight weekly drop and provides some purchasing power for potential buyers, though affordability remains a major hurdle in many markets.

Mortgage rates move with the bond market and inflation data. The 10-year Treasury yield hovered around 4.29 percent after weaker jobs data fueled expectations of a Federal Reserve rate cut. Mortgage applications rose, led by refinances, as borrowers sought to lock in lower payments or pull cash from home equity. Analysts say rates are likely to stay above 6 percent this year, with inflation trends and policy signals guiding the path ahead.

Lower rates can spur interest but they do not erase fundamental affordability issues. Real estate markets in many regions still face limited listings and high upfront costs, which can blunt the impact of cheaper financing.

Policy signals will shape the next phase. A possible Fed rate cut could lift buying power, yet inflation pressures and tariff-related costs pose upside risks. Lenders may lean into more adjustable rate options or cash-out refinances, shifting demand in ways that keep the market uneven across regions.

Highlights

The housing landscape will stay fluid as rates drift and inflation data evolve.