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