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Mortgage Rates Take A Lucky Seventh Dip

Mar 07, 2025
030625-Freddie Mac PMMS chart
Associate Editor

Latest rate declines should provide homebuyers ‘a strong incentive to make a move,' Freddie Mac Chief Economist says

Potential homebuyers looking to take out home loans have something to cheer in the latest news on mortgage rates.

The 30-year fixed-rate mortgage (FRM) rate averaged 6.63% as of March 6, 13 basis points below last week’s 6.76% average, marking the seventh week in a row of declines, according to Freddie Mac's Primary Mortgage Market Survey (PMMS).  

Sam Khater Freddie Mac Chief Economist
Sam Khater, Freddie
Mac's chief economist

For perspective, the average 30-year FRM rate is now 41 basis points less than its average in mid-January. 

The 15-year FRM, meanwhile, has seen a similar descent, just a bit more pronounced in the look-back. It slid to an average rate of 5.79% as of March 6, 15 basis points below an average of 5.94% a week earlier — and, compared to mid-January, the average 15-year FRM is now 48 basis points lower. 

“As the spring homebuying season gets underway, the 30-year fixed-rate mortgage saw the largest weekly decline since mid-September,” noted Freddie Mac’s Chief Economist, Sam Khater, in a release. “The decline in rates increases prospective homebuyers’ purchasing power and should provide a strong incentive to make a move.”

In addition, Khater noted the lower rates are giving some existing homeowners an opportunity to refinance. “In fact, the refinance share of market mortgage applications released this week reached nearly 44%, the highest since mid-December,” he said. 

Looking back at the trends stretching into late December 2024, Freddie Mac’s survey showed the 30-year FRM rate averaged:

  • 6.63% on March 6, 2025;
  • 6.76% on Feb. 27, 2025; 
  • 6.85% on Feb. 20, 2025; 
  • 6.87% on Feb. 13, 2025;
  • 6.89% on Feb. 6, 2025;
  • 6.95% on Jan. 30, 2025; 
  • 6.96% on Jan. 23, 2025;  
  • 7.04% on Jan. 16, 2025; 
  • 6.93% on Jan. 9, 2025; 
  • 6.91% on Jan. 2, 2025; 
  • 6.85% on Dec. 26, 2024; and 
  • 6.72% on Dec. 19, 2024.

The 15-year FRM rate averaged:

  • 5.79% on March 6, 2025; 
  • 5.94% on Feb. 27, 2025; 
  • 6.04% on Feb. 20, 2025; 
  • 6.09% on Feb. 13, 2025; 
  • 6.05% on Feb. 6, 2025;  
  • 6.12% on Jan. 30, 2025;
  • 6.16% on Jan. 23, 2025; 
  • 6.27% on Jan. 16, 2025; 
  • 6.14% on Jan. 9, 2025; 
  • 6.13% on Jan. 2, 2025; 
  • 6.0% on Dec. 26, 2024; and
  • 5.92% on Dec. 19, 2024. 
     

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.

Samir Dedhia CEO of One Real Mortgage
Samir Dedhia, CEO of
One Real Mortgage

“Market sentiment is shifting as economic uncertainty persists,” observed Samir Dedhia, CEO of One Real Mortgage. “Stock market volatility and weaker economic indicators have fueled expectations that the Federal Reserve will cut the Fed Funds Rate by 75 basis points this year .... Investors are also preparing for a more accommodative monetary policy.” 

“Additionally, uncertainty surrounding political and economic policies has prompted a move toward bonds, traditionally viewed as safe-haven assets, contributing to the continued downward pressure on rates,” Dedhia added. “For homebuyers, this is a significant development, as lower rates improve affordability and boost purchasing power.” 

However, he cautioned, “Prolonged rate decreases could intensify competition in certain housing markets, making inventory and affordability key concerns moving forward.”

About the author
Associate Editor
Published
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