The average long-term U.S. mortgage rate fell for a second straight week, though borrowing costs stayed higher than a year ago, keeping many prospective buyers on the sidelines. The benchmark 30-year fixed rate slipped to 6.65% from 6.67% the previous week, Freddie Mac reported Thursday.
One year earlier, that same rate averaged 6.58%. The 15-year fixed rate, a common choice for homeowners refinancing existing loans, also edged down, dropping to 5.95% from 5.96%. A year ago it sat at 5.69%, meaning both benchmarks remain above their 2025 levels despite the recent pullback.
For a household shopping this summer, the difference is real money. Rates hovering near 6.65% leave monthly payments meaningfully heavier than they were last year, and that gap has pushed some buyers to delay purchases altogether. Sluggish home sales through 2026 reflect that hesitation.
Mortgage rates have climbed for most of the year, chipping away at purchasing power even as the past fortnight offered modest relief. Lenders price home loans largely off the 10-year Treasury yield, which itself responds to inflation, Federal Reserve policy decisions, and bond investors’ expectations for the broader economy.
Those bond yields have marched higher for months, driven by worries over persistent inflation and heavy government debt. Crude oil prices soared earlier this year after the U.S. conflict with Iran began in late February, feeding expectations of hotter inflation. Even with oil easing recently, long-term yields sit steeper than they were before that conflict, keeping upward pressure on home loan costs.
The recent dip arrives against that turbulent backdrop, a small break from the pattern seen when rates spiked to multi-month highs earlier in the spring. Whether the softening continues depends heavily on how bond markets read the inflation picture in the weeks ahead.
For consumers weighing a purchase or refinance, the two-week decline is unlikely to transform affordability on its own. Rates would need to fall considerably further to meaningfully expand what buyers can borrow, and with Treasury yields still elevated, that shift is not guaranteed. Many households may find the coming months hinge less on headline rate moves and more on whether inflation cools enough to let the bond market settle.