30-Year Mortgage Rates Dip to 6.76%—Easing Pressure on Buyers

Mortgage rates drop to 6.76% this week, offering buyers a bit more flexibility as the bond market settles and spring housing demand builds.

May 2, 2025 - 00:53
May 2, 2025 - 00:55
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30-Year Mortgage Rates Dip to 6.76%—Easing Pressure on Buyers
30-Year Mortgage Rates Dip to 6.76%—Easing Pressure on Buyers

Homebuyers got a bit of good news this week as mortgage rates dipped slightly following weeks of ups and downs in the financial markets.

According to Freddie Mac, the average rate for a 30-year fixed mortgage fell to 6.76%, down from 6.81% last week. Rates on 15-year fixed mortgages also ticked down to 5.92% from 5.94%.

The drop in rates comes as the bond market shows signs of calming down. The yield on the 10-year Treasury note—often a key driver for mortgage rates—has dropped to about 4.2%, compared to 4.31% a week ago. This easing has helped bring a little more stability to mortgage pricing.

Why Rates Are Easing Now

Mortgage rates had been unpredictable in recent weeks, especially after President Trump announced a new round of tariffs in early April. But now, with the markets waiting to see what the Federal Reserve does next, things are settling a bit.

Kara Ng, a senior economist at Zillow Home Loans, says the lower rates might help some buyers who are stretching their budgets. “This slight drop could be just enough to help someone close to their limit buy a home,” she said. “For those ready to move forward, conditions are improving a little.”

Fed Expected to Hold Rates Steady

The Federal Reserve is widely expected to keep interest rates unchanged during its meeting next week. While the Fed doesn't directly set mortgage rates, its decisions—and the market’s expectations about them—play a big role.

Economic data is mixed. A report released Wednesday showed the U.S. economy shrank during the first quarter, but inflation came in hotter than many expected. This combination makes it hard to predict the Fed’s next steps.

Home Loan Activity Still Sluggish

Even with this week’s small rate drop, borrowing costs remain high compared to earlier this year. That’s keeping many would-be buyers on the sidelines during what is typically a busy season for real estate.

Applications for home purchases fell by 4% last week, according to the Mortgage Bankers Association. Refinancing activity also dropped 4%, showing that many homeowners aren’t finding current rates attractive enough to make a switch.

With mortgage rates still well above recent lows, buyers are proceeding cautiously. But for those close to making a move, this week’s decline could offer a little extra breathing room.

Also Read: Starter Homes in 233 U.S. Cities Now Cost $1 Million or More

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