Mortgage rates drop to lowest level in over a year as buyers regain leverage

Core Insights - Mortgage rates have dropped to their lowest level in over a year, with the average rate on a 30-year fixed mortgage decreasing to 6.19% from 6.27% last week [1] - The average rate for a 15-year fixed mortgage also fell to 5.44% from 5.52% last week [4] - The decline in mortgage rates is attributed to falling Treasury yields and market expectations of an upcoming Federal Reserve rate cut [7][8] Mortgage Market Dynamics - The current mortgage rate of 6.19% is nearly a full percentage point lower than the 7% rate at the start of 2025, which has led to high refinancing activity, accounting for over half of all mortgage transactions for six consecutive weeks [2] - The shift in mortgage rates provides a window of opportunity for buyers, as rates have eased during the peak buying season, allowing for potential savings [10][11] - Despite the drop in rates, affordability remains a challenge, but borrowers have control over the rates they lock in through credit, loan type, and down payment decisions [12]