Mortgage rates have officially fallen to the lowest level seen in over two months, but remain hovering not too far below 7%. The average 30-year mortgage rate decreased from 6.85% last week to 6.76% this week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac.
“The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,” said Sam Khater, Freddie Mac’s chief economist.
This week’s stats:
- The 30-year FRM averaged 6.76%, down from last week when it averaged 6.85%. A year ago at this time, the 30-year FRM averaged 6.94%.
- The 15-year FRM averaged 5.94%, down from last week when it averaged 6.04%. A year ago at this time, the 15-year FRM averaged 6.26%.
Realtor.com Senior Economist Joel Berner noted that despite inflation remaining above the Fed’s 2% threshold and the continued threat of tariffs, “the financial markets are settling down and mortgage rates should continue to hover just below 7%.” He added that a “tough week in the stock market is pulling investors into the bond space, decreasing debt yields and giving mortgage rates a bit of breathing room.”
Berner continued: “Though mortgage rates have fallen over the past several weeks and look a bit more promising to prospective homebuyers, we are far from the home finance environment of the post-pandemic homebuying frenzy when rates were below 4%, and we are unlikely to return. Existing home sales, new home sales, and pending sales have all struggled to kick off 2025 with much momentum, as high mortgage rates negatively impact home affordability. Buyers, who are doing the budget math to find how much home they can afford under the pressure of high mortgage rates, and sellers, many of whom are unmotivated to move because of the favorable rates they purchased at a few years ago, are stuck in the mud early in 2025. The good news is that for-sale inventory continues to grow and sellers are adjusting their expectations and prices, so continued relief from mortgage rates may spur on a strong spring buying season.”
To view the full report, click here.
