U.S. 30-Year Mortgage Rates Fall Slightly to 6.85% Amid Elevated Borrowing Costs

Mortgage rates in the U.S. have slightly decreased this week after a month of increases, with the average rate on a 30-year fixed mortgage falling to 6.85% from 6.89%. Similarly, the average rate for a 15-year fixed mortgage also declined to 5.99%, marking a modest easing in borrowing costs compared to last year. This decline is attributed to easing inflation pressures and a slight retreat in the 10-year Treasury yield, although rates remain elevated and continue to weigh on homebuyers' purchasing power. The housing market remains sluggish due to high mortgage costs that started rising in 2022, dampening sales and affordability. Experts suggest that even small drops in mortgage rates can improve affordability and advise potential buyers and homeowners to consider locking in rates while the market shows signs of stability. Despite the improvements, mortgage rates are still influenced by economic uncertainty, including government debt concerns and shifting tariff policies under the Trump administration.