Mortgage rates fell to their lowest level since October, with Freddie Mac’s latest survey showing an average rate on the benchmark 30-year fixed mortgage at 6.58%. This marks a decrease from last week’s reading of 6.63%.
According to Sam Khater, Freddie Mac’s chief economist, the decline in mortgage rates is boosting purchase application activity as borrowers take advantage of lower interest rates.
The current rate is significantly lower than the average rate of 6.49% seen last year. The 15-year fixed mortgage rate also fell to 5.71%, down from last week’s reading of 5.75%.
The U.S. housing market continues to face challenges, including high home prices and interest rates that are reducing homebuying activity. To exacerbate the issue, homeowners and landlords are facing higher insurance premiums and property taxes.
Treasury Secretary Scott Bessent has announced addressing the housing affordability crisis as one of his top priorities for this fall. Housing experts predict a sluggish summer season, with existing homes and new ones seeing decreased activity.
Source: https://www.foxbusiness.com/economy/mortgage-rates-august-14-2025