It ends two consecutive weeks of rate hikes

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Mortgage rates dipped slightly this week after two consecutive increases the 30-year fixed-rate mortgage averaged 6.30%, down from 6.34% last week, marking one of the lowest levels in about a year.
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Freddie Macs chief economist Sam Khater said lower rates are encouraging more homebuyers to move forward, boosting purchase activity despite lingering affordability challenges.
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Cash purchases remain a major force in the market: nearly one-third (32.8%) of 2025 home sales were all-cash, driven by investors, wealthy buyers, and older homeowners using equity from previous sales.
Homebuyers got a little relief this week as mortgage rates dipped slightly after rising over the previous two weeks. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.30% this week.
Sam Khater, Freddie Macs chief economist, said the recent trend is encouraging.
Over the last few weeks, mortgage rates have settled in at their lowest level in about a year, he said. There is growing evidence that homebuyers are digesting these lower rates and gradually are willing to move forward with buying a home, which is boosting purchase activity.
Latest rates
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The 30-year FRM averaged 6.30% as of October 9, 2025, down from last week when it averaged 6.34%. A year ago at this time, the 30-year FRM averaged 6.32%.
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The 15-year FRM averaged 5.53%, down from last week when it averaged 5.55%. A year ago at this time, the 15-year FRM averaged 5.41%.
A growing number of homebuyers dont care what the prevailing mortgage rate is because they are paying cash. A new analysis by Realtor.com found that nearly one-third of homes purchased so far in 2025 did not require financing.
The analysis suggests the increase in cash purchases shows that more homes are being sold as second homes and to investors.
Nationwide, 32.8% of home sales in the first half of 2025 were all-cash transactions. Thats down slightly from last year but remains well above pre-pandemic norms, when cash averaged just 28.6% of sales.
"Cash buyers have long been a fixture in the market, but their influence is more pronounced today than in pre-pandemic years," said Danielle Hale, chief economist at Realtor.com. "High-wealth buyers, investors, and those with significant equity can move quickly and often win out in competitive situations. For traditional, mortgage-reliant buyers, this can add another hurdle in an already challenging affordability environment."
The analysis found that older households and buyers with significant equity are the most likely to purchase without a mortgage, often using proceeds from a prior home sale.
Posted: 2025-10-10 11:17:50