Mortgage rates rose slightly this week after the Federal Reserve’s latest interest rate cut on Wednesday proved insufficient to offset a spike in Treasury yields earlier in the week.
The average 30-year mortgage rate was 6.22% through Wednesday, according to Freddie Mac data. That’s up from 6.19% last week but still not far from year-to-date lows. The average 15-year mortgage rate was 5.54%, from 5.44% last week.
Financial markets are closely watching upcoming economic data for clues about the direction of Treasury yields and the interest rates that closely track them.
The Federal Reserve opted to cut benchmark interest rates by 25 basis points at Wednesday’s meeting, but the decision drew dissents in opposite directions, showing Fed governors were unusually divided amid evidence that the labor market is weakening while inflation is running a full percentage point above the central bank’s 2% target.
Read more: When will mortgage rates go down? Outlook after the Fed meeting.
The Fed doesn’t set mortgage rates, but its interest rate policy influences their direction. Fed governors signaled that they expect one more interest rate cut in 2026, a message that sent Treasury yields downward on Wednesday afternoon.
Next week, new data on US hiring and inflation will be released, both of which may influence the direction of mortgage rates going forward.
“The path to lower mortgage rates heading into 2026 may be paved if the data backs up the Fed’s expectations for continued weaker labor and under-control inflation, potentially breaking below the holding pattern we’ve seen in recent months,” loanDepot’s chief investment officer and head economist Jeff DerGurahian said in a statement.
Steady mortgage rates throughout much of the fall have helped spur some homebuying and refinancing activity. Refinancing applications were up 14% through Friday from a week earlier, though applications to purchase a home fell 2% during that period, according to Mortgage Bankers Association data.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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