US mortgage rates decline as 30-year fixed hits 6.65%

Average mortgage rates in the United States have seen a slight decline. The 30-year fixed-rate mortgage eased to approximately 6.65%–6.67%, down from previous levels of 6.70% and 6.69% respectively.

Other mortgage products also showed downward movement, with the 15-year fixed rate averaging between 5.96% and 5.99%. The 5/1 ARM is reported at approximately 6.23%.

These fluctuations are largely driven by mortgage-backed securities and their correlation with longer-term Treasury yields, specifically the 10-year Treasury. Recent softer-than-expected Producer Price Index (PPI) data and Consumer Price Index (CPI) readings have contributed to a bond-market rally, lowering yields and providing potential downward pressure on mortgage rates. While rates remain high compared to historical lows seen earlier this year, such as the 5.98% recorded by Freddie Mac in Q1, they remain competitive with rates from a year ago.