The average 30-year mortgage rate in the U.S. fell to 6.85% this week, marking its fifth consecutive decline and reaching the lowest level since late December. Freddie Mac’s latest data reveals a slight dip from 6.87% last week, offering cautious optimism for buyers ahead of the critical spring homebuying season. ‘This stability is pivotal as we approach peak market activity,’ said Freddie Mac’s Chief Economist Sam Khater in a
statement impacting housing affordability.
Key drivers behind the downward trend include:
- Cooling 10-year Treasury yields (down to 4.5% from 4.79% in February)
- Higher-than-expected unemployment claims signaling economic uncertainty
- Market adjustments to Federal Reserve interest rate forecasts
While 15-year fixed rates also dropped to 6.04%, elevated home prices and borrowing costs continue sidelining first-time buyers. Existing home sales hit a 30-year low in 2023, with many households unable to leverage equity from previous purchases. Analysts note that today’s rates remain sharply higher than the sub-3% pandemic-era deals, amplifying monthly payment strains.
The recent decline mirrors 2023’s brief September dip but faces renewed pressure from inflation risks and potential tariff policies. For now, stable rates could revive ‘a frostbitten market,’ per Zillow data showing 11% more listings than Q1 2023.
