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U.S. Mortgage Rates Continue Downward Trend

U.S. Mortgage Rates Continue Downward Trend

Residential News » Washington D.C. Edition | By Monsef Rachid | May 2, 2025 8:46 AM ET


Coming in at 6.76 percent to kick off the month of May

According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the average rate for a 30-year fixed mortgage in the United States declined to 6.76% this week, marking a continued easing in borrowing costs.

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Sam Khater

"Mortgage rates again declined this week," said Sam Khater, Chief Economist at Freddie Mac. "In recent weeks, rates for the 30-year fixed-rate mortgage have fallen even lower than the first quarter average of 6.83%."

While rates remain slightly above early April's 6.64% average, they have dropped roughly 16 basis points over the past 12 weeks and nearly 40 basis points compared to this time last year. That year-over-year decline marks the largest since November 2024.

The dip in mortgage rates comes alongside a notable decrease in 10-year Treasury yields, which serve as a key benchmark for long-term interest rates. Yields have now retreated to levels not seen since before former President Trump's tariff announcement, signaling a modest reduction in financial market volatility.

Despite the easing in rates, the U.S. housing market remains in flux. New home listings saw an uptick in April when compared to a year earlier, yet the overall market momentum is showing signs of fatigue. Homes are spending more time on the market, and active inventory is climbing--indications that buyer demand is softening in response to still-elevated mortgage rates.

Freddie Mac News Facts:

  • The 30-year FRM averaged 6.76% as of May 1, 2025, down from last week when it averaged 6.81%. A year ago at this time, the 30-year FRM averaged 7.22%.
  • The 15-year FRM averaged 5.92%, down from last week when it averaged 5.94%. A year ago at this time, the 15-year FRM averaged 6.47%.

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