The average rate on a 30-year U.S. mortgage edged lower this week, returning to its lowest level in about a year.<\/p>\n
The average long-term mortgage rate slipped to 6.3% from 6.34% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.32%.<\/p>\n
The modest drop brings the average rate back to where it was two weeks ago, after a string of declines brought down home loan borrowing costs to their lowest since early October 2024.<\/p>\n
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week. The average rate dropped to 5.53% from 5.55% last week. A year ago, it was 5.41%, Freddie Mac said.<\/p>\n
Mortgage rates are influenced by several factors<\/a>, from the Federal Reserve\u2019s interest rate policy decisions to bond market investors\u2019 expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.<\/p>\n The 10-year yield was at 4.13% at midday Thursday, up from around 4.09% the same time last week. The yield has been trending higher since it slid to around 4.02% on Sept. 11.<\/p>\n In late July, mortgage rates started declining in the lead-up to the Federal Reserve\u2019s widely anticipated decision<\/a> last month to cut its main interest rate for the first time in a year amid growing concern over the U.S. job market<\/a>.<\/p>\n