30-year mortgage rate slips to 6.56% as housing market stays weak

The average rate on a 30 year U.S. mortgage eased this week to 6.56 percent, its lowest level in 10 months, while the 15 year fixed rate held steady at 5.69 percent, mortgage buyer Freddie Mac said Thursday. The modest decline continues a six week stretch of lower readings but leaves borrowing costs close to the elevated levels that have weighed on the housing market since 2022.

Freddie Mac reported the 30 year rate at 6.56, down from 6.58 the prior week and above last year’s average of 6.35. Mortgage data firm Optimal Blue showed a comparable 30 year rate of about 6.548 for locks as of Aug. 27, reflecting small differences in timing and methodology across industry trackers. Economists generally expect mortgage rates to remain in the mid 6 percent range through the year.

The recent easing has not yet translated into a broad recovery in home sales. A seasonally adjusted index of pending home sales fell 0.4 percent in July from June, the National Association of Realtors reported, a sign that contract signings remain cautious even as rates soften. Sales activity sank to near 30 year lows in 2024 and has remained sluggish in 2025, according to market analyses.