The average rate on a 30-year fixed mortgage backed by Freddie Mac fell by 4 bps from the previous week to 6.89 percent as of June 5th, 2025, easing from its highest level in nearly four months. The decline mirrored lower yields on long-dated Treasuries as evidence of a weaker labor market and the ISM Services PMI unexpectedly falling into contraction territory last month drove investors to price in rate cuts by the Federal Reserve. “The average mortgage rate decreased this week, which is welcome news to potential homebuyers who also are seeing inventory improve and house price growth slow,” said Sam Khater, Freddie Mac’s chief economist.