Mortgage rates eased again this week, pushing the average long-term borrowing cost to its lowest level in more than three years even as U.S. home sales have stayed weak. Freddie Mac reported Thursday that the benchmark 30-year fixed-rate mortgage averaged 6.01%, down from 6.09% the previous week, which was the latest sign that pricing pressure for would-be buyers may be gradually easing.
The modest decline still left rates clustered around the 6% range that has characterized this year, according to Freddie Mac’s figures. The company also said the average rate was higher than a year earlier, when it averaged 6.85%, underscoring that affordability has not returned to pandemic-era conditions.
Freddie Mac said the average 30-year fixed rate reached its lowest point since Sept. 8, 2022, when the average rate was 5.89%. In related rate signals from the broader bond market, the 10-year Treasury yield was 4.09% at midday Thursday, down from about 4.09% a week earlier, a path that lenders typically track when setting mortgage pricing.
Rates for refinancing also moved lower. Freddie Mac reported that the average 15-year fixed mortgage rate edged down to 5.35% from 5.44% the prior week, while one year ago the rate averaged 6.04%, according to the company.
Even with improved borrowing costs, housing transactions have struggled to rebound. Sales of previously occupied homes have remained at 30-year lows, and pending sales data offered another caution: the National Association of Realtors reported its seasonally adjusted index of pending home sales fell 0.8% in January compared with December, and pending home sales were down 0.4% from January of the prior year.
NAR’s chief economist said the improvement in affordability had not yet translated into stronger buying activity. “Improving affordability conditions have yet to induce more buying activity,” Lawrence Yun said, according to the report.
Other economists suggested lower mortgage rates can support demand, at least as the spring homebuying season approaches. Lisa Sturtevant, chief economist at Bright MLS, said, “Lower rates should improve affordability and bring out more buyers,” adding that “Assuming mortgage rates remain at about where they are, or come down even further, we should see more buyers this spring as both inventory and the weather improves.”
Mortgage applications rose as well, including activity tied to refinancing. The Mortgage Bankers Association reported that mortgage applications increased 2.8% for the week compared with the prior week, and it said refinance loans accounted for 57.4% of all applications.
The latest pullback came after the Federal Reserve decided to pause additional interest-rate cuts following three consecutive reductions at the end of 2025, the report said. Minutes from the Fed’s last meeting, released Wednesday, showed that many officials wanted to see inflation fall further before supporting additional cuts, which the report said can affect bond yields—and, ultimately, mortgage rates.
Fed officials do not directly set mortgage rates, but their short-term policy decisions influence investor expectations for the economy and inflation, which can shift the yield on 10-year Treasurys used in pricing home loans, according to the report.