30-Year Mortgage Rates Hit Near 6.1%

Thirty-year mortgage rates fell to new 2025 lows this week, with lender-tracked data showing rates as low as 6.12% (Optimal Blue) and the Mortgage Bankers Association reporting a 30-year contract rate near 6.30%; day-to-day averages tracked by Zillow and Yahoo hovered about 6.16–6.21%. The Federal Reserve approved a 25‑basis‑point policy-rate cut and is expected to cut again, though the Fed does not directly set mortgage rates and further declines may be limited by Treasury yields and investor demand for mortgage‑backed securities. MBA weekly data showed purchase applications rose about 4.5–5% (roughly 20% higher year‑over‑year) while refinance requests jumped roughly 9% week‑over‑week and 111% year‑over‑year, a surge MBA deputy chief economist Joel Kan attributed mainly to conventional refinances. Lower rates have so far spurred more refinancing activity than home purchases. Some program flow was disrupted by a federal government shutdown, notably affecting USDA applications.