- Mortgage rates have declined for the second straight week, with the 30-year fixed-rate mortgage averaging 6.27% (down from 6.30%) and the 15-year fixed-rate mortgage averaging 5.52% (down from 5.53%), according to Freddie Mac.
- Lower rates have encouraged more refinancing activity, while increased housing inventory and slower price growth are creating slightly better conditions for homebuyers.
- Homebuyer activity remains muted, as high sale prices, economic uncertainty, and concerns about job security continue to weigh on demand.
Mortgage rates dipped this week for the second week in a row. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.27% this week, down from 6.3% the previous week.
“Mortgage rates inched down this week and have held relatively steady over the past several weeks,” said Sam Khater, chief economist at Freddie Mac. “Importantly, homeowners have noticed these consistently lower rates, driving an uptick in refinance activity. Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home."
Current rates
The 30-year FRM averaged 6.27% as of October 16, 2025, down from last week when it averaged 6.30%. A year ago at this time, the 30-year FRM averaged 6.44%.
The 15-year FRM averaged 5.52%, down from last week when it averaged 5.53%. A year ago at this time, the 15-year FRM averaged 5.63%.
Despite the falling rates, buyers aren’t showing up in big numbers. According to real estate brokerage Redfin, slightly slower mortgage rates haven’t been enough to overcome other challenges.
According to the company’s research, buyers are still sitting on the sidelines due to stubbornly high sale prices and economic uncertainty. The median home-sale price is up 1.9% year over year, the second-biggest increase in six months, keeping payments elevated, even though they’re down from their all-time high. At the same time, the government shutdown and concerns about tariffs are adding to economic uncertainty for many.
“Buyers are hesitant because of concerns about job security and high mortgage rates,” said Jo Chavez, a Redfin Premier agent in Kansas City, Mo. “Even though rates have come down from their peak, a lot of people are waiting for sub-6% rates before they buy. And in Kansas City, where there are tens of thousands of government jobs, furloughs and potential layoffs are hitting hard.”
As a result, pending home sales are moving lower, falling 1.2% year over year, the biggest decline in over five months. Homes are also taking a long time to sell, with the typical home sitting on the market for 48 days before going under contract, a week longer than last year.