The average rate on a 30-year U.S. mortgage fell this week to its lowest level in nearly a year, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the Federal Reserve next week.
The long-term rate eased to 6.35% from 6.5% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.2%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate slipped to 5.5% from 5.6% last week. A year ago, it was 5.27%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.
Rates have been mostly declining since late July amid growing expectations that the Fed will cut its benchmark short-term interest rate for the first time this year at the central bank’s meeting of policymakers next week.
While the Fed doesn’t set mortgage rates, its actions can influence bond investors’ appetite for long-term U.S. government bonds, like 10-year Treasury notes. Lenders use the yield on 10-year Treasurys as a guide to pricing home loans. The yield was at 4% Thursday afternoon.
The Fed has kept its main interest rate on hold this year because it’s been more worried about inflation potentially worsening because of President Donald Trump’s tariffs than about the job market.
But in a high-profile speech last month, Federal Reserve Chair Jerome Powell signaled the central bank may cut rates in coming months amid concerns about weaker job gains following a grim July jobs report, which included massive downward revisions for June and May.
More recent job market data have fueled speculation that the central bank could be preparing to lower rates. The Labor Department said last week that the economy added just 22,000 jobs in August. And on Tuesday, revised jobs data from the government showed the U.S. job market had been much weaker last year and this year than earlier data suggested.
Meanwhile, the latest weekly snapshot of unemployment benefit claims shows more U.S. workers applied for unemployment benefits last week, an indication that the number of layoffs could be rising.
The housing market has been in a slump since 2022, when mortgage rates began climbing from historic lows. Sales have remained sluggish so far this year as the average rate on a 30-year mortgage has mostly hovered above 6.5%.
The average rate is now at its lowest level since Oct. 10, when it was 6.32%.
A similar pullback in rates happened last year in the weeks leading up to the Fed's interest rate policy meeting in September. That's when the Fed cut its key interest rate for the first time since March 2020, in the early days of the pandemic. Back then, the average rate on a 30-year mortgage got down to a 2-year low of 6.08%, but soon after climbed again, reaching above 7% by mid-January.
Mortgage rates could follow a similar trajectory this time, given that expectations of a Fed rate cut have already brought mortgage rates lower.
“We should not expect rates to drop much further, and in fact, there is a possibility that mortgage rates could actually increase after the Fed cut,” said Lisa Sturtevant, chief economist at Bright MLS.
For now, the recent pullback in mortgage rates has been encouraging to many prospective homebuyers and homeowners eager to refinance.
Mortgage applications, which include loans to buy a home or refinance an existing mortgage, jumped to a three-year high last week, according to the Mortgage Bankers Association.
Applications for mortgage refinancing loans made up nearly 50% of all applications last week, as homeowners who bought in recent years when mortgage rates surged seized the opportunity to lower their monthly home loan payment.
If mortgage rates continue to ease, home shoppers will benefit from more affordable financing. But lower mortgage rates could also bring in more buyers, making the market more competitive, at a time when sellers across the country are having a tougher time driving a hard bargain.
FILE - A development of new homes in Eagleville, Pa., is shown on April 28, 2023. (AP Photo/Matt Rourke, File)
NAKHON RATCHASIMA, Thailand (AP) — A construction crane collapsed onto an elevated road near Bangkok, killing two people on Thursday, a day after another crane fell on a moving passenger train in northeastern Thailand and killed 32 people.
The work on an extension of the Rama 2 Road expressway — a major artery leading from Bangkok — has become notorious for construction accidents, some of them fatal.
The crane collapsed at part of the road project in Samut Sakhon province, trapping two vehicles in the wreckage, according to the government’s Public Relations Department.
Transport Minister Phiphat Ratchakitprakarn said on Thai TV Channel 7 that two people had died. It was unclear if anyone else had been trapped in the wreckage.
There was uncertainty about the number of victims because the site is still considered too dangerous for search teams to enter, said Suchart Tongteng, a rescue worker with the Ruamkatanyu Foundation.
“At this moment, we still can’t say whether another collapse could happen,” he said, citing dangling steel plates. “That’s why there are no rescue personnel inside the scene, only teams conducting on-site safety assessments.”
At the site of Wednesday's train derailment, the search for survivors ended, Nakhon Ratchasima Gov. Anuphong Suksomnit said. Three passengers listed as missing were presumed to have gotten off the train earlier, but that was still being investigated.
Officials believed 171 people had been aboard the train’s three carriages, which were being removed from the scene Thursday.
The crane that fell, crushing part of the train, was a launching gantry crane, a mobile piece of equipment often used in building elevated roadways.
Police were still collecting evidence and interviewing witnesses and have not pressed charges, provincial Police Chief Narongsak Promta told reporters.
South Korea's Foreign Ministry reported a South Korean man in his late 30s, was among the dead.
The high-speed rail project where the accident occurred is associated with the plan to connect China with Southeast Asia under Beijing’s Belt and Road Initiative.
In August 2024, a railway tunnel on the planned route, also in Nakhon Ratchasima, collapsed, killing three workers.
Anan Phonimdaeng, acting governor of the State Railway of Thailand, said the project’s contractor is Italian-Thai Development, with a Chinese company responsible for design and construction supervision.
A statement posted on the website of the company, also known as Italthai, expressed condolences to the victims and said the company would pay compensation to the families of the dead and hospitalization expenses for the injured.
Transport Minister Phiphat said Italthai was also the lead contractor on the highway project where Thursday's accident took place, though several other companies are also involved.
The rail accident had already sparked outrage because Italthai was also the co-lead contractor for the State Audit Building in Bangkok that collapsed during construction last March during a major earthquake centered in Myanmar. The building's collapse was the worst quake damage in Thailand and about 100 people were killed.
Twenty-three individuals and companies have been indicted, including Italthai's president and the local director for the company China Railway No. 10, the project’s joint venture partner. The charges in the case include professional negligence and document forgery, and Thailand's Department of Special Investigation has recommended more indictments.
The involvement of Chinese companies in both projects has also drawn attention, as has Italthai and Chinese companies’ involvement in the construction of several expressway extensions in and around Bangkok where several accidents, some fatal, have occurred.
In Beijing, Chinese Foreign Ministry spokesperson Mao Ning said Wednesday the government was aware of the rail accident and had expressed condolences.
Associated Press writers Wasamon Audjarint in Bangkok and Hyung-jin Kim in Seoul, South Korea, contributed to this report.
Relatives of victims and others wait at a hospital, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan. 15, 2026. (AP Photo/Sakchai Lalit)
Relatives wait at a hospital to receive bodies of victims, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan.15, 2026. (AP Photo/Sakchai Lalit)
Forensic workers inspect the site of a train accident, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan. 15, 2026. (AP Photo/Sakchai Lalit)
A cuddly toy lies on the ground at the site of a train accident, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan. 15, 2026. (AP Photo/Sakchai Lalit)
A construction crane that collapsed on the Rama 2 Road elevated expressway in Samut Sakhon province, Thailand on Thursday, Jan. 15, 2026. (AP Photo/Arnun Chonmahatrakool)
A construction crane that collapsed on the Rama 2 Road elevated expressway in Samut Sakhon province, Thailand on Thursday, Jan. 15, 2026. (AP Photo/Arnun Chonmahatrakool)
A construction crane that collapsed on the Rama 2 Road elevated expressway in Samut Sakhon province, Thailand on Thursday, Jan. 15, 2026. (AP Photo/Arnun Chonmahatrakool)
