The average rate on a 30-year fixed mortgage fell to 6.65 percent, down from 6.67 percent the prior week, according to Freddie Mac's Primary Mortgage Market Survey released Thursday. The 15-year fixed rate declined to 5.95 percent from 5.96 percent.
The 10-year Treasury yield, the primary driver of mortgage pricing, remained anchored around 4.7 percent Thursday afternoon. The persistence of that level despite a two-week decline in mortgage rates underscores the difference between intermediate and long-duration pricing: a 10-year Treasury auction cleared at 4.683 percent—the highest yield in 19 years—while the 30-year bond auction stopped at 5.216 percent, a 25-year peak.
"Borrowers can save thousands of dollars by actively comparing mortgage offers from different lenders," said Sam Khater, Freddie Mac's chief economist.
Jake Krimmel, Realtor.com senior economist, cautioned that the current print is fragile. "The 30-year Treasury yield reached a nearly 20-year high this week, prompting the Treasury Department to buy back billions in bonds," Krimmel said. "Most mortgages are outstanding for seven to ten years before refinancing or a move occurs, so they track the 10-year Treasury yield more closely. The 10-year yield has not moved as dramatically as the 30-year yield."
Federal debt expansion continues to pressure yields across the curve. The Congressional Budget Office projects the federal government will run a budget deficit of approximately $2.1 trillion this fiscal year. Treasury auction results—especially the 19-year and 25-year highs for intermediate and long debt—signal that bond investors are demanding higher compensation for duration risk. Without a material shift in fiscal outlook or Fed signaling, the 10-year anchor is unlikely to provide sustained relief for mortgage holders.
