Mortgage Rates Down After Five Weeks Of Increases

The 30-year fixed-rate mortgage (FRM) broke a five-week upward trajectory and dipped to 6.96%, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). At this same time last year, the rate averaged 6.69%. 

Last week, the 30-year FRM averaged 7.04%, crossing the 7% threshold for the first time since May 2024. 

“While affordability challenges remain, this [rate decrease] is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications,” Sam Khater, Freddie Mac’s chief economist, stated in a release. Khater noted a week ago that despite high rates, the GSE’s research “highlights that consumers can save money if they shop for several different lender quotes.”

The rate-increasing trend had followed three weeks of declines stretching back to late November. The PMMS showed the 30-year fixed-rate mortgage (FRM) averaged: 

• 7.04% on Jan. 16, 2025; 
• 6.93% on Jan. 9, 2025; 
• 6.91% on Jan. 2, 2025; 
• 6.85% on Dec. 26, 2024; 
• 6.72% on Dec. 19, 2024; 
• 6.60% on Dec. 12, 2024; 
• 6.69% on Dec. 5, 2024; and
• 6.81% on Nov. 28, 2024. 

According to Freddie Mac, the 15-year fixed-rate mortgage averaged 6.16% as of today, taking a similar downward turn – also following five weeks of increases, preceded by three weeks of decreases – as 30-year rates now have. The 15-year fixed rate mortgage averaged: 

• 6.27% on Jan. 16, 2025; 
• 6.14% on Jan. 9, 2025; 
• 6.13% on Jan. 2, 2025; 
• 6.0% on Dec. 26, 2024; 
• 5.92% on Dec. 19, 2024; 
• 5.84% on Dec. 12, 2024; 
• 5.96% on Dec. 5, 2024; and 
• 6.10% on Nov. 28, 2024. 

At this same time last year, the 15-year fixed-rate mortgage rate averaged 5.96%. 

Freddie Mac notes that the PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.