Mortgage rates inched lower this week, still hovering below 7% but showing little change since earlier this month.
The latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday shows the 30-year fixed-rate mortgage (FRM) averaging 6.95%, down one basis point from last week’s 6.96%.
“The 30-year fixed-rate has hovered between 6% and 7% for most of the last two and a half years,” said Sam Khater, Freddie Mac’s chief economist. “That trend continued this week, with the average rate remaining essentially flat at 6.95%.”
He added: “Driven by these higher rates and a persistent supply shortage, affordability hurdles still exist for many homebuyers and a significant number of them remain on the sidelines.”
Realtor.com Senior Economist Joel Berner pointed to the Fed’s expected decision yesterday to keep interest rates unchanged and the Trump administration’s potential new tariffs as indicators of possible future rate increases.
“The Fed’s decision on Wednesday will not put any downward pressure on mortgage rates in the near term, and the new Trump administration’s agenda, which continues to emphasize tariffs as a tool of geopolitical aggression, will almost certainly be inflationary,” Berner commented. “Rising inflation will further tie the hands of the Federal Reserve, preventing direct decreases to interest rates, and indirectly will pull mortgage rates up as debt market investors demand greater future returns in response.
This week’s numbers:
- The 30-year FRM averaged 6.95% as of January 30, 2025, down slightly from last week when it averaged 6.96%. A year ago at this time, the 30-year FRM averaged 6.63%.
- The 15-year FRM averaged 6.12%, down from last week when it averaged 6.16%. A year ago at this time, the 15-year FRM averaged 5.94%.
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