- Mortgage rates in the U.S. hit a 10-month low at 6.56% on Thursday, according to the Federal Home Loan Mortgage Corporation.
- The company reports rising demand due to lower rates and economic growth.
- Zions Bank's Jeremy Holmgren suggests buying now as waiting for further rate drops might increase competition.
SALT LAKE CITY — Mortgage rates headed down this week, reaching a 10-month low.
The weekly average in the U.S. for a 30-year fixed-rate mortgage slid to 6.56% Thursday, the Federal Home Loan Mortgage Corporation, better known as Freddie Mac, reported, a drop of 0.02 percentage points from the week ending Aug. 21.
Weekly average rates haven't been below that level since hitting 6.54% in October 2024.
Freddie Mac posted Thursday that "demand continues to rise on the back of lower rates and solid economic growth. Though many potential homebuyers still face affordability challenges, consistently lower rates may provide them with the impetus to enter the market."
Mortgage News Daily showed an even lower rate Thursday for a 30-year fixed-rate mortgage, 6.5%, down 0.01% from Wednesday's daily index when rates fell to what was described as "a technical 'record low' for 2025," just below what was seen earlier this month.
A week ago, Freddie Mac reported weekly average mortgage rates were flat after coming down much of the summer, with purchase applications "outpacing 2024, though a number of homebuyers continue waiting on the sideline for rates to further decrease."
The Federal Reserve is now widely expected to cut the benchmark interest rate in mid-September, after Fed Chair Jerome Powell indicated in an Aug. 22 speech that it may be time for "adjusting our policy stance" on rate cuts given the risks facing the economy.
So should would-be homebuyers wait to see if mortgage rates fall further?
"Mortgage rates are currently sitting at a 10-month low, which is welcome news for potential homebuyers," Zions Bank mortgage manager Jeremy Holmgren told the Deseret News, adding that many are watching closely to see how the anticipated rate cut may impact mortgage rates.
"Historically, though, mortgage rates don't move in lockstep with Fed decisions, and any reaction is often delayed. That's why I caution buyers against sitting on the sideline waiting for rates to fall further," he said.
If mortgage rates do end up improving, Holmgren said competition in the housing market "will likely heat up quickly, pushing home prices higher. In the end, waiting could actually cost you more."
He advises Utahns to "buy now while rates are favorable, and remember — if they drop further down the road, you always have the option to refinance. In the meantime, you're building equity rather than waiting and risking higher prices."
