US mortgage rates continued to fall this week, with the average 30-year term dropping to its lowest level in more than a year.
The average long-term rate slipped to 6.19%, down from 6.27% the week prior. This marks the third consecutive week of decline and the lowest level recorded since October 3, 2024.
Rates on 15-year fixed-rate mortgages, often used for refinancings, fell to 5.44%, down from 5.52% last week.
Several factors shape mortgage rates, among the most influential being Federal Reserve interest rate policy decisions. Last month, the central bank moved to cut rates by a quarter point, the first reduction of the year. As reported earlier this month by The Dallas Express, most Fed officials support additional rate easing before the year is out.
The average rate on long-term US mortgages has persisted above 6% for over three years, driving up mortgage payments and challenging the housing market. These elevated rates coincided with an aggressive rate-tightening campaign that the Fed began in 2022 to help rein in surging inflation.
Last year, sales of previously occupied US homes fell to their lowest level in three decades. While sluggish sales persisted in 2025, last month saw them accelerate to their fastest pace since February as mortgage rates softened.
At the moment, borrowers are benefiting from the lower rates that began declining in July in anticipation of last month’s Fed cut. While Fed officials forecast two more cuts this year, sticky inflation could still cause the central bank to change course.