Mortgage rates dropped nearly 10 bps to their lowest level in months.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.76%, down from the week prior’s 6.85%. This is its lowest level so far in 2025 and the sixth week of declines.
A year ago at this time, the 30-year fixed-rate mortgage averaged 6.94%.
Fifteen-year rates also fell to 5.94% from 6.04%. A year ago at this time, they were at 6.26%.
“This week, mortgage rates decreased to their lowest level in over two months,” said Sam Khater, Freddie Mac’s Chief Economist. “The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home.”
Changing market dynamics could entice potential buyers back after a discouraging January. Both new and pending home sales declined last month, while home price gains shot up to a 19th consecutive record high.
“Although rate improvements offer relief for buyers, market volatility is expected to persist in the coming months as economic policies and data continue to influence investor sentiment,” Samir Dedhia, CEO of One Real Mortgage.
“For existing homeowners, this decline presents an opportunity to refinance into a lower rate, reducing monthly payments or tapping into home equity to consolidate debt.”
Dedhia noted that personal circumstances should take precedence when timing a home purchase, however. Chasing cooling rates without solid financial backing will harm buyers, not help them. This is especially true while home prices are at record highs.
Inventory, while slowly expanding, remains tight, and building is likely to be impacted by the Trump administration’s deportations and tariffs. Investors are feeling blue about their prospects in the housing market this year.
source: https://www.themortgagenote.org
