Mortgage rates drop to 6.26%, boosting affordability.
Refinancing surges, now nearly 60% of mortgage applications.
Fed cut expectations, weak job market drive rate declines.
Home affordability improved again this week. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.26% this week.
“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.
In fact, the Mortgage Bankers Association reported that mortgage applications increased 29.7% last week from one week earlier. Most of those were applications to refinance existing mortgages.
The Refinance Index increased 58% from the previous week and was 70% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 3% from one week earlier.
“Indicative of the weakening job market, and in anticipation of a rate cut from the Federal Reserve, mortgage rates last week dropped to their lowest level since last October, with the 30-year fixed rate declining to 6.39%, said Mike Fratantoni, MBA’s chief economist.
“Homeowners responded swiftly, with refinance application volume jumping almost 60% compared to the prior week.”
Fratantoni said homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey.
Latest rates
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%.