Mortgage rates held essentially flat this week as Treasury yields moved slightly lower. The average 30-year mortgage rate was 6.84% this week through Wednesday, according to Freddie Mac data, from 6.85% a week ago. The average 15-year mortgage rate was 5.97%, from 5.99%.

U.S. Treasury yields are set to decline further according to bond strategists who are clinging to expectations the Federal Reserve resumes cutting interest rates after pausing for more than half a year even as dealers are set to underwrite a deluge of new supply.

An auction of 30-year Treasuries drew solid demand in a sign that the $29 trillion market is so far avoiding an all-out buyers’ strike in long-term bonds.

Mortgage rates edged down on Thursday, closely mirroring the downward path of 10-year Treasury yields driven by weaker than expected private-sector hiring numbers.

Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. Last week's reading edged 4 basis points lower to 6.85%. Last September, the average sank as far as 6.08%. But back in October 2023, Freddie Mac's average saw a historic rise, surging to a 23-year peak of 7.79%.

The average rate on a 30-year U.S. mortgage fell modestly for the second straight week, but home borrowing costs remain elevated.

US Treasury Secretary Scott Bessent said Wednesday that an extended pause on higher tariff rates is possible for some countries, as a deadline approaches for dozens of economies to face steeper levies.