After decreasing for seven consecutive weeks, mortgage rates remained basically flat this week, with the average rate for a 30-year, fixed-rate mortgage at 6.65%, up slightly from 6.63% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.74%.
“Despite volatility in the markets, the 30-year fixed-rate mortgage remained essentially flat from last week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Mortgage rates continue to be relatively low versus the last few months, and homebuyers have responded. Purchase applications are up 5% as compared to a year ago. The combination of modestly lower mortgage rates and improving inventory is a positive sign for homebuyers in this critical spring homebuying season.”
The average rate for a 15-year fixed-rate mortgage was 5.80%, up slightly from 5.79% last week but down from 6.16% a year ago.
“Several factors have contributed to this week’s increase,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “One of the primary drivers is growing uncertainty surrounding proposed tariffs and their potential inflationary impact. If new tariffs drive up costs for goods and materials, inflation could remain elevated for longer than expected, prompting the Federal Reserve to maintain a more cautious approach toward rate cuts. While market sentiment had previously anticipated multiple Fed rate cuts in 2024, concerns over inflationary pressures may lead to a more measured response, influencing mortgage rate movements in the months ahead.”
“For homebuyers, this slight increase in rates comes at a crucial time as the spring housing market gains momentum,” Dedham says. “Although rates remain significantly lower than their peak levels from last year, this stabilization serves as a reminder that market conditions can shift quickly. With inventory expected to remain tight in many markets and buyer demand likely to increase, those looking to purchase a home should be mindful of potential rate fluctuations and act strategically to secure favorable financing.”
“Additionally, with affordability being a key concern, prospective buyers may want to explore mortgage strategies with their lenders to optimize loan structures,” he adds. “Even with a slight rise in rates, the overall market remains favorable compared to late 2023, and buyers who are well-prepared can still capitalize on current opportunities.”
Photo: David Kristianto