A surprising July jobs report, which included downward revisions to early 2025 data, drove mortgage rates to their lowest mark in months, Freddie Mac reported.
The 30-year fixed-rate average decreased to 6.63% as of Aug. 7, according to the government-sponsored enterprise's weekly Primary Mortgage Market survey. The average dropped 9 basis points from 6.72% in
The 15-year average took a similar downward path, dropping 10 basis points to 5.75% from 5.85% week over week. This week's mean rate finished higher from its year-ago level of 5.63%.
"The 30-year fixed-rate mortgage dropped to its lowest level since April," Freddie Mac Chief Economist Sam Khater said in a press release. "The decline in rates increases prospective homebuyers' purchasing power," he added.
Reaction to last Friday's
Current trends, even if temporary, open a window of opportunity for those seriously looking to purchase, concurred Chen Zhao, Redfin head of economics research in a recent report. Some are already anticipating what the Federal Reserve's next moves will be based on the latest data.
"Last week's soft jobs report ups the chances of the Fed cutting interest rates in September. The market's anticipation of that cut has already pushed mortgage rates down, and there's no guarantee they'll fall further."
Mortgage rates follow Treasury yields this week
After closing at 4.36% Thursday, July 31, 10-year Treasury yields plummeted on Friday to 4.22% with investors turning to the safety of the bond market after the surprising jobs data was published. Yields continued their slide early in the week before inching higher again on Wednesday. The 10-year yield stood at 4.23% as of Thursday morning.
Mortgage rates, which are typically influenced by the 10-year Treasury, followed suit. Mirroring Freddie Mac's findings, data from Lender Price showed the 30-year rate at 6.59% on Thursday morning, taking a sizable 24 basis point week-over-week fall from 6.83%.
Zillow also found the national 30-year fixed average at 6.69% on Thursday, down by 13 basis points compared to 6.82% seven days earlier.
Meanwhile, the Mortgage Bankers Association's
While data throughout the past year reveals that any pullback in rates will almost immediately spur refinance transactions, home price levels still present obstacles in many parts of the country to have driven consistent, steady growth in purchases.
This week's rate trends, though, could go a long way in revealing homebuyer demand in what remains an unpredictable housing market that recently has shown
"With mortgage rates remaining elevated and concerns about a slowing U.S. economy, subdued demand and downward pressure on home prices is expected to persist, particularly in regions where prices have already decelerated or where recent appreciation has significantly limited local affordability," said Cotality Chief Economist Selma Hepp.
