Freddie Mac Reports 30-Year Mortgage Rate Hits 7.24% in Second Weekly Drop

The average 30-year fixed-rate mortgage rate dropped to 7.24% this week, marking the second consecutive weekly decline and the lowest level in more than a month. Mortgage buyer Freddie Mac reported the figure on Thursday, noting that the rate had stood at 7.32% the previous week. In the same period one year ago, the benchmark average was 6.17%.

Costs for shorter-term loans also declined. The average rate on 15-year fixed-rate mortgages, a popular option for homeowners seeking to refinance, slipped to 6.60% from 6.68% last week. That rate was 5.41% at this time last year.

Lenders generally price home loans based on the trajectory of the 10-year Treasury yield. The 10-year Treasury yield stood at 4.98% at midday Thursday on the bond market. Investors track this yield closely because it serves as a primary guide for setting mortgage interest rates.

The current yield remains well above its pre-conflict level. Before the war with Iran, the 10-year Treasury yield sat at 3.97%. It surged to more than 5.30% earlier this month before settling into its current range. Factors such as inflation, Federal Reserve policy, and bond-market investor expectations for the economy continue to influence these borrowing costs.

Freddie Mac’s weekly survey provides a baseline for national mortgage trends. The data indicates a slight easing in long-term borrowing costs, despite the rates remaining higher than they were a year ago. The movement in the 10-year Treasury yield directly mirrors the shifts in the average mortgage rates reported by the agency.