30-Year Fixed Mortgage Rates See Largest Weekly Drop in Over a Year

Freddie Mac reports the most significant weekly decline in 30-year fixed mortgage rates since September 2024, with averages falling 15 basis points to 6.35%. The dip follows a slide in 10-year Treasury yields to April-level lows, though housing demand remains muted amid economic uncertainty.

"Purchase applications show the strongest annual growth in four years," said Freddie Mac's chief economist Sam Khater, signaling cautious optimism. Historical data reveals the 30-year FRM fluctuated between a 2.65% pandemic low and 8.89% 1994 peak, demonstrating rate volatility across cycles.

Persistent inflation signals and weakening labor metrics suggest rates may stabilize NEAR current levels. Analysts note affordability barriers persist despite the improvement, with Lisa Sturtevan warning of limited relief for prospective buyers.