CHICAGO (AP) \u2014 The average long-term U.S. mortgage rate fell slightly for the first time in six weeks on Thursday, marking a glimpse of relief for prospective homebuyers \u2014 although borrowing costs remain steeper than they were a year ago. <\/p>\n
The benchmark 30-year fixed rate mortgage rate tumbled to 6.67%, mortgage buyer Freddie Mac said Thursday, down from 6.69% reported last week<\/a>. Still, by comparison, the average rate was 6.58% at this time in 2025.<\/p>\n Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers\u2019 purchasing power. And that can led prospective home shoppers to delay buying, as seen while rates rose over prior weeks. U.S. sales of previously-occupied homes again slowed in July<\/a>.<\/p>\n Borrowing costs on 15-year fixed-rate mortgages \u2014 which are often sought by borrowers looking to refinance a home loan \u2014 also fell slightly this week. That rate averaged at 5.96%, down from 6.01% last week. But that\u2019s still higher than a year ago, when Freddie Mac said 15-year fixed-rate mortgages averaged at 5.71%.<\/p>\n Mortgage rates are influenced by several factors, including inflation, broader policy rate decisions from the Federal Reserve and expectations from bond market investors for the economy. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.<\/p>\n Similar to the latest mortgage rates, the 10-year Treasury has also eased a bit recently. The 10-year Treasury fell to 4.61% as of midday trading Thursday<\/a> \u2014 down from 4.72% at the start of the week.<\/p>\n Both mortgage rates and the bond market have been mostly rising this year due to the U.S. war with Iran<\/a>, which has fueled expectations for hotter inflation as crude oil prices soared. Despite easing oil prices recently, long-term bond yields remain steeper than they were before the conflict began in late February, pushing mortgage rates to tread higher.<\/p>\n Before the war, the 10-year Treasury was just 3.97%. And 30-year and 15-year mortgage rates sat around 5.98% and 5.44%, respectively, in late February per Freddie Mac.<\/p>\n Meanwhile, consumer and wholesale inflation<\/a> also cooled some in the U.S. last month. Prices to continue to climb, just at a slower pace<\/a>. If that trend continues, the Federal Reserve<\/a> could decide to hold off on hikes to interest rates. <\/p>\n","protected":false},"excerpt":{"rendered":"CHICAGO (AP) \u2014 The average long-term U.S. mortgage rate fell slightly for the first time in six weeks…\n","protected":false},"author":3,"featured_media":954467,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[64,79,455,266,83,32555,67,132,68],"class_list":["post-998618","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-federal-reserve-system","tag-inflation","tag-iran","tag-mortgages","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/117089588135196081","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/998618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=998618"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/998618\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/954467"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=998618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=998618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=998618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}