Mortgage rates drop for third consecutive week

The 30-year fixed-rate mortgage averaged 6.63% this week — down from 6.72% last week and the lowest weekly average since April 10, 2025, according to Freddie Mac. Mortgage News Daily, which uses a different set of metrics, pegged the 30-year rate at 6.55% on Aug. 7.

The drop over this past week is a result of the latest jobs report released on Aug. 1 by the U.S. Bureau of Labor Statistics, which pointed to a sluggish labor market in July and significant downward job gains revisions for May and June. The data fueled speculation that short-term interest rates may be cut in September and that inflation is cooling.

The mortgage rate drop might not last, however, depending on the impact new tariffs have on inflation.