Mortgage rates fell for a third straight week, with the average rate for a 30-year, fixed-rate mortgage dropping to 6.89%, down from 6.95% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago as this time the average rate for a 30-year was 6.64%.
“The 30-year fixed-rate mortgage decreased this week, now averaging 6.89%,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Mortgage rates have been stable over the last month and incoming data suggest the economy remains on firm footing. Even though rates are higher compared to last year, the last two weeks of purchase applications are modestly above what we saw a year ago, indicating some latent demand in the market.”
For the week ended February 6, the average rate for a 15-year fixed-rate mortgage was 6.05%, down from last week when it averaged 6.12%.
A year ago at this time, the 15-year averaged 5.90%.
“This marked the third consecutive week of rate declines after six weeks of increases, offering some much-needed relief for homebuyers,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “We’re seeing rates inch closer to last year’s 6.6 percent levels, which could help improve affordability.”
“Recent economic data, including Wednesday’s ISM report missing forecasts, contributed to downward pressure on mortgage rates,” Dedhia says. “However, homebuyer demand softened last week, dropping 4 percent compared to the prior week, as reflected in the Mortgage Bankers Association’s Seasonally Adjusted Index.”
“We are seeing an increase in purchase applications over the last two weeks, and the harsher winter may be a factor for the temporarily slowing demand,” Dedhia adds. “As we move into early spring, with improved weather and potentially lower rates, demand will rebound. That said, market volatility will likely persist through the first quarter as investors and lenders respond to evolving government and economic data. Although rate fluctuations will gradually stabilize as the year progresses, it’s important to recognize that 2025 remains in its early stages, and a variety of factors could still drive volatility in the months ahead.”
Photo: Chris Liverani