U. S. Mortgage Rates Drop. Lowest Since May

PANAMA CITY BEACH, Fla. - EntSun -- U.S. Mortgage Rates Drop, Lowest Since Early May

By Alex Veiga

Rates on 30-year mortgages fell to 6.77% from 6.81% last week, while 15-year rates dropped to 5.89% from 5.96%, Freddie Mac said.

MCCLEAN, Va. — The average rate on a 30-year U.S. mortgage fell to its lowest level since early May, an encouraging trend for prospective homebuyers at a time when the U.S. housing market remains largely held back by elevated borrowing costs and rising prices.

The long-term rate fell to 6.77% from 6.81% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.86%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.89% from 5.96% last week. A year ago, it was 6.16%, Freddie Mac said.

More on EntSun News

• New Release: 'The Invisible Alternative' Unveiled by Atrisk Corporation, Resilient
• Couture By Elesia Reclaims The Runway Of Everyday Life With Bold Return And New Hiya Sunshine Line
• BillBoards Inc. Hits the Road with God Bless America Tour and Reality Series Now Streaming on Tubi TV
• Cynthia Pinot Among Artists Selected for Renowned London Art Biennale 2025
• Real Estate Experts Highlight Jersey Shore as a Smart Buy in 2025

High mortgage rates can add hundreds of dollars a month in costs for borrowers and reduce their purchasing power. That's helped keep the U.S. housing market in a sales slump that dates back to 2022, when mortgage rates began to climb from the rock-bottom lows they reached during the pandemic.

Last year, sales of previously occupied U.S. homes sank to their lowest level in nearly 30 years. They've remained sluggish so far this year, as many prospective homebuyers have been discouraged by elevated mortgage rates and home prices that have kept climbing, albeit at a slower pace.

Copyright 2025 The Associated Press. All rights reserved.