The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) in the US fell sharply to 6.39% in the week ending September 12th 2025, a fresh low since October 2024, from 6.49% in the previous period, according to the Mortgage Bankers Association. Mortgage rates were down for a third consecutive week, tracking lower Treasury yields as investors get increasingly convinced the Fed will resume rate cuts in September. As a result, mortgage applications jumped 29.7% and applications to refinance a home loan soared 58%.