Mortgage rates dropped for a sixth week in a row but the average rate for a 30-year still remains just below 7%.
According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed-rate mortgage was 6.76%, down from 6.85% last week.
A year ago at this time, the average rate for a 30-year was 6.94%.
“This week, mortgage rates decreased to their lowest level in over two months,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home.”
As of the week ended February 27, the average rate for a 15-year fixed-rate mortgage was 5.94%, down from 6.04% last week and down from 6.26% a year ago.
“Mortgage rates declined again this week, with Freddie Mac reporting the 30-year fixed at 6.76 percent and the 15-year fixed at 5.94 percent,” says Samir Dedhia, CEO of One Real Mortgage, in statement. “This marks the sixth straight week of declines, bringing rates to their lowest levels since December 2024 and within reach of last year’s 6.6 percent benchmark.”
“The drop has been fueled by falling Treasury yields, driven by weaker consumer spending data and signs of a cooling economy,” Dedhia says. “As uncertainty lingers, investors are shifting toward bonds as a safe haven, helping to push mortgage rates lower.”
“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,” Dedhia adds. “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. With rates trending downward but housing inventory still tight, buyers should stay informed about market conditions.”
“However, personal circumstances should take precedence over trying to time the market when making decisions about buying or selling a home.”
Photo: Susan Q Yin
