From Yahoo Finance: 2025-06-05 12:03:00

Mortgage rates dipped this week, with the 30-year rate at 6.85% and the 15-year rate at 5.99%. Rates have remained stable for over a year, impacting buyer activity. Overall mortgage applications decreased, with purchase applications down 4% and refinancing applications also dropping 4%.

Treasury yields and mortgage rates fell this week, influenced by economic data indicating a weakening service sector and private job creation slump. Discussions about a possible Federal Reserve rate cut in September have reignited. Mortgage rates are not directly controlled by the Fed but are influenced by rate expectations.

The Federal Reserve’s influence on mortgage rates is indirect. Traders are looking to Friday’s nonfarm payrolls report for insights on the job market’s health. A lower job creation estimate could increase the likelihood of a rate cut. Expectations about benchmark interest rates impact mortgage rates.

Read more: Mortgage rates ease for the first time in a month