Housing News

Housing Market Opportunity Knocks as Mortgage Rates Continue Trending Down

If homeowners and potential homebuyers are looking for some good news these days, it can be found in the form of mortgage rates.

That’s because mortgage rates for 30-year, fixed-rate loans continued their recent downward trend, falling to 6.62% in the week ending April 10, 2025, according to the latest data from Freddie Mac.

That’s down two basis points from 6.64% the previous week. A year ago, they were at 6.88%.

Even small decreases in rates can save homeowners and buyers on their monthly mortgage payments.

Mortgage applications shot up by 20% over the previous week, according to the latest data from the Mortgage Bankers Association. In fact, applications reached their highest level since September 2024.

“As purchase applications continue to climb, the spring homebuying season is shaping up to look more favorable than last year,” Freddie Mac Chief Economist Sam Khater said in statement.

Rates remained in the mid-6% range for around a month. However, rates have been trending down for a little while now, falling each week by a few basis points.

That was nothing compared to the last week though. Rates initially tumbled to their lowest point of the year, before bouncing back above where they were they had been previously, before again, dropping back down to where they are now.

The decrease that happened late last week drove a massive increase in mortgage applications as both homebuyers and homeowners rushed to apply for a new loan with the lower rates.

The number of homeowners seeking to refinance rose by a sizable 35% over the previous week and were 93% higher than the same week in 2024. Purchase applications also rose by a good amount (albeit a smaller one), rising by 10% over the previous week and up 24% from the previous year.

The bottom line is that homeowners hoping to refinance their loans and prospective homebuyers should to be ready to pounce on a rate drop if another one happens, especially as we’re now fully into Spring homebuying season.

“The decision on when to buy a home is ultimately an individual decision that depends on a person’s or family’s specifical financial situations,” Bright MLS Chief Economist Lisa Sturtevant said in a statement. The multiple listing service covers the mid-Atlantic region. 

“In this current housing market, there is more [housing] inventory available, which gives buyers more choices and more leverage,” Sturtevant added. “Because mortgage rates are likely going to bounce around, buyers should be sure to have their finances in order so they can be ready to jump on rates when they do drop.”