Borrowers continue to benefit from lowering mortgage rates, as the average 30-year fixed has slid to an 11-month low.
According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.26% a 9-basis-point decrease from last week’s average of 6.35%.
“Mortgage rates decreased yet again this week, prompting many homeowners to refinance. In fact, the share of mortgage applications that were refinances reached nearly 60%, the highest since January 2022,” said Sam Khater, Freddie Mac’s chief economist.
Realtor.com Senior Economist Jiayi Xu, commented, “As widely expected, the Federal Reserve lowered the federal funds rate by 25 basis points—the first move since December 2024—bringing the target range to 4.0–4.25 percent. While the President has argued that lower rates are needed to reenergize the sluggish housing market, the Fed emphasized that uncertainty remains high. Tariffs pose a wildcard risk to inflation, and downside risks to employment appear to be increasing.”
As for mortgage rates, Xu added that the shift into the low 6% range should support a modest pickup in home sales in the coming months, but the broader impact will remain limited, noting that 81% homeowners still hold mortgages below 6%, reducing incentives to sell or move.
“Meanwhile, the current environment is opening refinancing opportunities for households that purchased at early highs, offering some affordability relief,” Xu added. “At the same time, household real estate wealth has reached record levels, with elevated equity providing a meaningful cushion for both consumers and the wider economy.”
Quick numbers:
- The 30-year FRM averaged 6.26% as of September 18, 2025, down from last week when it averaged 6.35%. A year ago at this time, the 30-year FRM averaged 6.09%.
- The 15-year FRM averaged 5.41%, down from last week when it averaged 5.50%. A year ago at this time, the 15-year FRM averaged 5.15%.
