Mortgage rates dip back toward year-to-date lows

Mortgage rates dropped slightly this week despite some volatility in the Treasury yields they closely track.

The average 30-year mortgage rate was 6.19% for the week through Wednesday, down from 6.23% a week earlier. The average 15-year mortgage rate was 5.54%, from 5.51%.

Global bond yields, including the yield on the 10-year Treasury, which is most closely linked to mortgage rates, spiked on Monday after the Bank of Japan signaled that it was likely to raise interest rates this month. But in recent days, yields have moderated amid mixed signals about the health of the US job market.

The Federal Reserve is widely expected to cut interest rates at its meeting next week, a move that could help keep mortgage rates around year-to-date lows for longer.

“A December rate cut, which the market widely expects, could take further pressure off of mortgage rates as the year comes to a close, boosting buying power as the new year approaches,” Realtor.com senior economic research analyst Hannah Jones said in a statement.

Mortgage rates have been in a narrow range between 6.2% and 6.3% since October. Many economists now expect similar rates throughout next year. Zillow economists say mortgage rates are unlikely to fall below 6% next year, and Realtor.com and Redfin both expect them to average around 6.3% in 2026.