Stubbornly elevated but steady is how economists are positioning average mortgage rates over the last several weeks, ticking up and down in the high sixes range but remaining below 7%, a threshold that seems to keep homebuying activity moving, albeit slowly.
According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.76%, down from last week’s average of 6.81%. It’s the second consecutive week of slight declines.
“Mortgage rates again declined this week,” said Sam Khater, Freddie Mac’s chief economist. “In recent weeks, rates for the 30-year fixed-rate mortgage have fallen even lower than the first quarter average of 6.83%.”
Realtor.com Senior Economist Jake Krimmel commented, “This marks the second consecutive week of modest declines, but rates still remain stubbornly elevated. Rates at the beginning of May are notably higher than in early April, when they hovered around 6.64%, but are down about 13 basis points over the past 12 weeks and over 45 basis points from a year ago—the largest year-over-year drop since November 2024.”
Krimmel noted while the broader economic backdrop remains uncertain, this week, 10-year Treasury yields fell to pre-tariff-announcement levels, reflecting a slight easing in financial market volatility.
“Housing market activity, however, appears mixed: new listings in April 2025 were up compared to a year ago, but momentum has cooled since last month, suggesting that recent rate increases may be deterring some would-be sellers. At the same time, homes are sitting on the market longer and active inventory is rising—signs of a market that’s adjusting to slower demand. While home sale prices remain steady, with the Case-Shiller index up nearly 4% year-over-year as of February, more sellers have signaled a willingness to resort to price cuts, hinting that a softer market may be on the horizon.”
This week’s numbers:
- The 30-year FRM averaged 6.76% as of May 1, 2025, down from last week when it averaged 6.81%. A year ago at this time, the 30-year FRM averaged 7.22%.
- The 15-year FRM averaged 5.92%, down from last week when it averaged 5.94%. A year ago at this time, the 15-year FRM averaged 6.47%.
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