Mortgage Rates Hit 11-Month Low as Fed Signals Rate Cuts
Mortgage rates have just dropped to their lowest point in nearly a year, and that has gotten a lot of people talking. For months, buyers and homeowners alike have been squeezed by higher borrowing costs, but this week’s numbers are offering some welcome relief. According to new data from Freddie Mac, the average rate for a 30-year mortgage slipped from 6.56% down to 6.50%. That’s the lowest it’s been since October of last year. The 15-year mortgage rate fell, too, landing at 5.60%.
This decline hasn’t come out of nowhere. For much of 2025, rates have been easing little by little, including a notable five-week slide earlier in the summer. Now, the momentum is pointing toward even further drops. The big reason? The Federal Reserve is expected to cut its benchmark rate at its next meeting on September 17, most likely by a quarter of a percentage point. Lenders often adjust ahead of time, so mortgage rates tend to fall before the Fed actually makes its move.
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It isn’t just the Fed that’s influencing this trend. The 10-year Treasury yield, which has a strong link to mortgage pricing, has also been declining. When Treasury yields dip, lenders usually respond with lower mortgage offers. Combine that with a cooling job market and fresh unemployment data, and the conditions are set for mortgage rates to keep trending downward.
Now, what does this mean for buyers? Well, it’s a signal that action may be smarter than hesitation. Lower mortgage rates typically bring more buyers into the market, and when that happens, competition for available homes rises. So, even though the rates are friendlier, finding the right home at the right price could become tougher if too many buyers jump in at once.
That’s why preparation matters. Checking your credit report for errors and boosting your score could make a real difference when applying. Getting pre-approved for a mortgage can also give you an edge, showing sellers you’re serious and financially ready. Partnering with an experienced real estate agent and calculating your budget carefully—based on today’s rates, not tomorrow’s guesses—can make your path smoother and more strategic.
The takeaway here is simple: mortgage rates haven’t been this low in 11 months, and while they may continue to fall, there’s no guarantee this window will last. Just two years ago, rates were at their highest in decades. This current shift is a reminder that conditions can change quickly, and opportunities don’t always stick around. Acting wisely, and a little swiftly, could make all the difference for anyone hoping to buy or refinance in today’s housing market.
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