The average 30-year fixed mortgage rate fell to 6.29% on Friday from 16 basis points to 6.29%, according to Mortgage News Daily.
The lowest rate since October 3rd and the largest daily decline since August 2024. The rates eventually slipped out of the 6% range and are stuck for several months.
“This was a very simple response to the expected job report,” said Matt Graham, chief operating officer of Mortgage News Daily. “Remind me that markets can determine important things from an economic data perspective. There is a clear voting record in the bond market that suggests that employment reports are always the biggest potential source of rate volatility.”
Graham said in a post on X that many lenders are “good prices” than on October 3, citing in the 5% range.
The decline is a major change since May, when the fixed rate for 30 years peaked at 7.08%. This is a big deal for buyers shopping for their homes today, especially given the high home prices.
For example, someone who is buying a $450,000 home, slightly above the national median in August, is using a 30-year fixed mortgage with a 20% down payment. Because taxes and insurance are not included, the monthly payment of 7% is $2,395. At 6.29%, the payment is $2,226, a difference of $169 per month.
A sign was posted in front of a house for sale in San Francisco, California on August 27, 2025.
Justin Sullivan | Getty Images
That may not sound much to some people, but it can mean the difference between not only buying a home, but also qualifying for a mortgage.
The home builder stock responded positively on Friday, with the name as follows: Renal, Dr. Houghton and pulte About 3% noon. Home Building ETF ITB The rates have slowed down so it has been going hot last month. It’s nearly 13% for the past month.
The big question is whether the decline in interest rates is sufficient to bring home buyers back to the market.
The initial indicator, the demand for mortgages from home buyers, is yet to meet the gradually improved rates. According to the Mortgage Bankers Association, last week’s mortgage applications to buy a home were down 6.6% from four weeks ago.
“Homebuyers will tackle the lack of affordability, sellers will challenge more competition, and builders will deal with lower buyer demand,” Realtor.com’s chief economist Daniel Hale said in a statement after the release of his employment report in August on Friday. “These conditions don’t spell catastrophe, but they created a cruel summer in the housing market.”
Some analysts argue that buyers need to look at the mortgage rate in the 5% range before they actually make a difference. Home prices remain stubbornly high and profits are undoubtedly cooled, but they have not yet fallen at the national level. Furthermore, uncertainty about the state of the economy and job markets has led to many buyers on the sidelines.
