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.
“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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