FX.co ★ US 30-Year Mortgage Rate Eases from 4-Month High

As of June 5, 2025, the average interest rate on a 30-year fixed mortgage, supported by Freddie Mac, decreased by 4 basis points from the previous week, settling at 6.89 percent. This decline marks a retreat from its highest point in nearly four months. The reduction in rates is in line with the decrease in yields on long-term Treasury bonds. This market shift was influenced by indications of a weakened labor market and an unexpected contraction in the ISM Services PMI, prompting investors to anticipate future rate cuts by the Federal Reserve. "This week's decline in the average mortgage rate is encouraging news for potential homebuyers, who are also experiencing improvements in inventory and a slowdown in house price growth," stated Sam Khater, Chief Economist at Freddie Mac.