Mortgage rates increased this week, as market volatility continued, with the average rate for a 30-year fixed-rate mortgage (FRM) at 6.83%, up from 6.62% 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 7.1%.
Looking at the bright side, Sam Khater, chief economist for Freddie Mac, notes that the 30-year has been below 7% for 13 consecutive weeks.
“At this time last year, rates reached 7.1 percent while purchase application demand was 13 percent lower than it is today, a clear sign that this year’s spring homebuying season is off to a stronger start,” Khater says in a statement.
The average rate for a 15-year fixed-rate mortgage was 6.03%, up from 5.82% last week but down from 6.39% a year ago.
Samir Dedhia, CEO of One Real Mortgage, says this week’s movement “follows continued volatility in the bond and equity markets, driven by persistent inflation concerns, uncertainty around proposed tariffs, and shifting expectations about future Federal Reserve policy.”
“After last week’s stronger-than-expected inflation data pushed rates higher, we’ve seen some easing in recent days,” Dedhia says. “Since Friday, the 10-year Treasury yield has fallen from 4.5 percent to roughly 4.3 percent, signaling that market sentiment may be softening.”
“Compared to this time last year—when rates hit 7.1% and demand was significantly lower—today’s environment is more favorable for buyers,” Dedhia adds. “Purchase application activity is up 13 percent year-over-year, a clear sign that this year’s spring homebuying season is gaining real momentum.”
Freddie Mac notes that its survey is focused on closed conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
Photo: Bikram Sharma