Average Rate on a US 30-Year Mortgage Eases to 6.76%

The average rate on a 30-year mortgage in the U.S. eased again this week, modest relief for prospective home shoppers during what’s traditionally the busiest time of the year for the housing market.

Current Mortgage Rates

By ALEX VEIGA, AP Business Writer
The rate fell to 6.76% from 6.81% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.22%.

15-Year Fixed-Rate Mortgages

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.92% from 5.94% last week. It’s down from 6.47% a year ago, Freddie Mac said.

Factors Influencing Mortgage Rates

Mortgage rates are influenced by several factors, including global demand for U.S. Treasurys, the Federal Reserve’s interest rate policy decisions and bond market investors’ expectations for future inflation.

Volatility in Mortgage Rates

After climbing to a just above 7% in mid-January, the average rate on a 30-year mortgage has remained above 6.62%, where it was just three weeks ago. It then spiked above 6.8% the next two weeks, reflecting volatility in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

10-Year Treasury Yield

The yield, which had mostly fallen after climbing to around 4.8% in mid-January, surged last month to 4.5% amid a sell-off in government bonds triggered by investor anxiety over the Trump administration’s trade war.
The 10-year Treasury yield was at 4.23% in midday trading Thursday, up from 4.17% late Wednesday.

Impact on Homebuyers

As mortgage rates decline, they help give homebuyers more purchasing power. While down from a year ago, mortgage rates haven’t come down enough to encourage more home shoppers at a time when real estate prices are still rising nationally, albeit more slowly, and the number of properties on the market has risen sharply from a year ago.

Spring Homebuying Season

It’s one reason the spring homebuying season is off to a lackluster start. Sales of previously occupied U.S. homes fell in March, posting the largest monthly drop since November 2022.

Home Loan Applications

An index that tracks home loan applications fell 4.2% last week from a week earlier, according to the Mortgage Bankers Association. That was the index’s second straight weekly drop, although it was up 16.5% from a year earlier.

Mortgage Applications

“Mortgage applications fell for the second consecutive week as uncertainty continues to impact many buyers’ decisions to enter the housing market,” said MBA CEO Bob Broeksmit.

Future Outlook

Economists expect mortgage rates to remain volatile in coming months, though they generally call for the average rate on a 30-year mortgage to remain above 6.5% this year.

Mortgage Rate Predictions

“Homebuyers would like to see rates come down further, but it is becoming more likely that they will remain in the high 6% range this spring,” said Lisa Sturtevant, chief economist at Bright MLS.

Conclusion

In conclusion, the average rate on a 30-year mortgage in the U.S. eased to 6.76% this week, providing some relief for prospective home shoppers. However, mortgage rates are expected to remain volatile and above 6.5% for the rest of the year, which may impact the spring homebuying season.

FAQs

• Q: What is the current average rate on a 30-year mortgage in the U.S.?
  A: The current average rate on a 30-year mortgage in the U.S. is 6.76%.
• Q: How has the 10-year Treasury yield affected mortgage rates?
  A: The 10-year Treasury yield has surged to 4.5% amid a sell-off in government bonds, causing volatility in mortgage rates.
• Q: What is the outlook for mortgage rates in the coming months?
  A: Economists expect mortgage rates to remain volatile and above 6.5% for the rest of the year.
  Originally Published: May 1, 2025 at 12:12 PM EDT