Blog post date Feb 24, 2025
By Don Almeida- Mortgage Expert and President of Happy Home Mortgage
Mortgage rates have experienced a downward trend for the third consecutive week, with the 30-year fixed-rate mortgage averaging 6.89% as of February 6, 2025, a slight decrease from the previous week’s 6.95%. This marks a decline from the peak rate of 7.04% observed during the week of January 16, 2025. In comparison, the 30-year rate stood at 6.64% at this time last year. Similarly, the 15-year fixed-rate mortgage has decreased to an average of 6.05%, down from 6.12% the previous week, and slightly higher than the 5.90% rate recorded a year ago.
Freddie Mac’s Chief Economist, Sam Khater, noted that mortgage rates have stabilized recently, suggesting a firm economic foundation. He observed that despite higher rates compared to last year, the past two weeks have seen purchase applications modestly surpassing figures from the same period last year, indicating latent demand in the market.
Supporting this trend, recent data indicates that 30-year mortgage rates have continued to decline, reaching an average of 6.87% as of February 14, 2025. This represents a decrease of 6 basis points from the previous day and is significantly lower than the 7.37% peak observed in the spring of 2024.
Additionally, the Mortgage Bankers Association (MBA) reported an increase in mortgage applications, attributing this rise to the recent decline in rates. The MBA’s data shows that the Refinance Index increased by 4% from the previous week, while the Purchase Index rose by 2% during the same period. This uptick in activity suggests that both prospective homebuyers and current homeowners are taking advantage of the more favorable rate environment.
In summary, the recent stabilization and slight decline in mortgage rates have positively influenced market activity, with increased applications for both purchases and refinances. This trend indicates a potential thaw in buyer activity, as consumers respond to the more favorable borrowing conditions.
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