Mortgage rates fell again over the past week, according to mortgage buyer Freddie Mac.
Freddie Mac’s latest Primary Mortgage Market Survey, released Wednesday, showed that the average rate on the benchmark 30-year fixed mortgage declined to 6.18%, down from 6.21% a week earlier. By comparison, the average rate on a 30-year loan stood at 6.85% a year ago.
“The modest decline reflects a bond market that moved throughout the week – albeit within a tight range – following a mix of cooling and resilient macro signals,” said Realtor.com senior economist Jake Krimmel. He added that large swings in mortgage rates are not expected for the remainder of the year, citing “a traditionally slow homebuying month during what has already been a sluggish year for housing activity.”
Mortgage applications for both purchases and refinancing continue to edge lower as the year comes to a close. Purchase applications fell 4% through Friday compared with the previous week, while refinancing applications dropped 6%, according to the Mortgage Bankers Association, as reported by Yahoo Finance.
Mortgage rates are not directly set by the Federal Reserve’s interest rate decisions but tend to closely track the yield on the 10-year U.S. Treasury. The 10-year yield hovered around 4.14% as of Wednesday afternoon.
READ: Trump proposes multi-decade mortgage to encourage homebuying (November 11, 2025)
On Tuesday, the Bureau of Economic Analysis released its initial estimate of third-quarter gross domestic product. The data showed the economy grew at an annualized rate of 4.3% during the three-month period covering July, August, and September. That figure exceeded expectations from economists polled by LSEG, who had forecast GDP growth of 3.3% for the quarter.
The government also released its latest inflation and employment data last week. According to the Bureau of Labor Statistics, the consumer price index rose 0.2% in November from the previous month and increased 2.7% on a year-over-year basis. Both readings came in below expectations from economists surveyed by LSEG, who had projected a 0.3% monthly increase and a 3.1% annual rise.
The Labor Department reported Tuesday that employers added 64,000 jobs in November. The unemployment rate climbed to 4.6%, the highest level since September 2021.
READ: Fed rate cuts may ripple through mortgage market (September 18, 2025)
Meanwhile, the average rate on a 15-year fixed mortgage increased to 5.5%, up from 5.47% the previous week.
President Donald Trump has recently floated the idea of a 50-year mortgage to encourage home buying. Responding to the proposal, Federal Housing Finance Agency Director Bill Pulte, who oversees Fannie Mae and Freddie Mac, said they are “working on it,” calling it “a complete game-changer.” The idea, however, has drawn criticism, with experts arguing that policies addressing structural housing challenges—rather than extending loan terms—would likely have a more meaningful and lasting impact on housing affordability and access.