Freddie Mac Mortgage Rates—Sept. 11, 2025
What happened to mortgage rates this week
The Freddie Mac 30-year mortgage rate dropped 15 basis points to 6.35% this week, following the downward trend in 10-year Treasury yields. While the CPI data showed inflation remained sticky in August, investors were already nearly certain of a Fed rate cut in September, especially after a slowdown in U.S. jobs growth and initial weekly jobless claims rising to their highest level since October 2021. The September decision may once again see dissent—not on whether to cut, but on how large the reduction should be, as some voting members may favor a bigger move to get ahead of the cooling labor market. While markets are betting on three straight quarter-point cuts at each of the Fed’s remaining policy meetings this year, sticky August inflation adds uncertainty to the path ahead.
What it means for the housing market
As the anticipated Fed rate cut approaches, mortgage rates have edged lower, providing some relief to active buyers and helping stabilize borrowing costs. However, its impact on overall market momentum is likely to be gradual, since 81% of homeowners hold mortgages below 6%, keeping rates too high to prompt most existing owners to sell and leaving inventory constrained. Looking ahead, rates may stabilize or even rise slightly after the FOMC meeting, as markets—positioned for more aggressive easing—could be disappointed by the Fed’s guidance, further limiting potential housing activity.
