Mortgage rates remained relatively steady from last week, but an increase in home-purchase application activity after multiple weeks of decreases shows that homebuyers are getting accustomed to the current environment and responding to even slight rate decreases.
This week, the average 30-year fixed mortgage rate (FRM) decreased two basis points to 6.67%, down from 6.69% last week, while the 15-year FRM averaged 5.96%, down from 6.01% last week, according to the latest Primary Mortgage Market Survey® (PMMS®), released by Freddie Mac Thursday.
Rates had been increasing for the last five consecutive weeks, and were back up to 6.69% as of this writing.
Realtor.com Senior Economist Joel Berner said with the combination of a continuing conflict in Iran and inflation expectations, homebuyers should plan for rates to remain at current levels for some time.
“The 10-year Treasury yield increased only slightly this week as the conflict in Iran has drawn on, putting pressure on oil prices and thereby expectations of future inflation. Yesterday’s CPI print came in right in line with expectations, having little impact on the markets.”
He added, “While it’s certainly good news that inflation did not surprise us by coming in hotter than expected, a cooler readout could have given the Federal Reserve more pause on what looks like an upcoming rate hike before the end of 2026 after holding rates late last month. All told, there is little downward pressure on mortgage rates between a Middle East conflict that’s keeping inflation high and a Federal Reserve that’s laser-focused on driving that inflation lower. Current mortgage rate levels may become quite familiar in the months ahead.”
Sam Khater, Freddie Mac’s Chief Economist, noted in this week’s report, “Housing affordability has improved from a year ago, and recent increases in purchase and refinance applications suggest that borrowers continue to respond to even modest changes in mortgage rates.”
To read the full report from Freddie Mac, click here.
