Mortgage Rates Near 11-Month Lows as Market Awaits Fed Decision

Lead U.S. 30-year fixed mortgage rates averaged 6.49% on September 6, 2025, holding near their lowest level since October 2024 amid mixed economic signals and renewed bets on impending Fed rate cuts.

Nut Graf Following a weaker-than-expected August jobs report, bond markets drove Treasury yields down, pulling mortgage rates lower despite a slight uptick in weekly lender surveys. Homebuyers and refinancers remain poised to lock in rates before the Federal Reserve’s September meeting.

Market Snapshot

  • Daily average 30-year fixed mortgage rate: 6.49%
  • Weekly average 30-year fixed mortgage APR: 6.55% (up from 6.54% last week)
  • 15-year fixed mortgage APR: 5.76%
  • Mortgage Rate Variability Index: 5 of 10, indicating moderate rate consistency

Economic Drivers Mortgage News Daily reported that on Friday the average rate for a 30-year fixed mortgage plunged by 16 basis points to 6.29%-the largest single-day drop in over a year-following the release of disappointing employment data for August, marking the lowest rate since October 3, 2024. Investors interpreted the weaker jobs figures as bolstering the case for Fed rate cuts as soon as mid-September.

Comparative Benchmarks

  • Freddie Mac’s weekly 30-year average rate: 6.50%, down from 6.56% a week earlier.
  • NerdWallet’s 30-year fixed APR: 6.48%, unchanged from the prior day; 15-year fixed APR: 5.38%, down two basis points.

Implications for Borrowers Lower rates translate into significant savings. For example, on a $450,000 home with 20% down, moving from a 7.00% to a 6.29% rate cuts monthly payments by roughly $169. As the Fed meeting approaches, borrowers face a choice between locking in current rates or risking volatility in the days ahead.

Outlook With Treasury yields trading near recent lows and Fed signals pointing toward rate cuts, mortgage rates are likely to remain in the mid-6% range through September. However, any unexpected inflation data or stronger economic releases could trigger upward rate moves, underscoring the importance of timely rate locks for both buyers and refinancers.