Mortgage rates continued to edge down this week, with the average rate for a 30-year fixed-rate mortgage dropping to 6.87%, down from 6.89% 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 6.77%.
“The 30-year fixed-rate mortgage continued to inch down this week, reaching its lowest level thus far in 2025,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Recent mortgage rate stability is benefitting potential buyers, as purchase demand is stronger than this time last year. This is an indication that a thaw in buyer activity could be on the horizon.”
The average rate for a 15-year fixed-rate mortgage is 6.09%, up from 6.05%last week and up from 6.12% a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume increased 2.3% on an adjusted basis during the week ended February 7, as rates dipped.
The result was that applications for refinances increased 10% compared with the previous week and were up 33% compared with the same week one year ago.
Meanwhile, applications for purchases decreased 2% compared with the previous week but were up 2% compared with the same week one year ago.
Samir Dedhia, CEO of One Real Mortgage, notes that this was the fourth straight week that rates decreased, inching closer to last year’s 6.6% rate for the 30-year fixed.
“Wednesday’s Core CPI report showed a higher than expected increase in inflation, contributing to upward pressure on mortgage rates for the first time in nearly a month,” Dedhia says in a statement. “However, jobless Claims came in lower than expected – 213,000 versus 215,000 forecast – resulting in today’s drop in rates.”
“Market volatility will likely persist through the first quarter as investors and lenders respond to evolving government and economic data,” Dedhia adds. “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: Jakub Żerdzicki