Housing News

Mortgage Rates Tick Down as Homebuyers Head into the Market

Homebuyers are seeing an ever-so-slight relief, as mortgage interest rates declined a little in the last week back down to where they were two weeks ago.

Mortgage rates ticked down to an average 6.65% for 30-year, fixed-rate loans in the week ending March 27, 2025, according to the latest data from Freddie Mac. That’s two basis points lower than they were in the previous week, when rates checked in at 6.67%, and equal to where rates were earlier in the month.

The relative stability of rates, which haven’t experienced any big swings recently, is good for homebuyers. This allows them to figure out how much home they can afford.

“Recent mortgage rate stability continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

As Khater noted, mortgage applications for purchase loans have been on the rise. In fact, purchase applications saw the “strongest weekly pace in almost two months,” Joel Kan, the Mortgage Bankers Association’s vice president and deputy chief economist, said in a statement.

The MBA reported that purchase applications are up 7% over where they were a year ago at this time. This indicates a growing desire from would-be homeowners to become actual homeowners.

“Last week’s purchase activity was driven primarily by a 6% increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities,” Kan said.

Those sentiments were echoed by Bright MLS Chief Economist Lisa Sturtevant.

Even though rates are only slightly lower than they were a year ago, buyers do have some leverage heading into the spring market,” Sturtevant said in a statement. The multiple listing service covers the mid-Atlantic region. 

“With more inventory on the market, more sellers are dropping their asking prices and are less likely to receive multiple offers,” Sturtevant added. “Sellers are also more willing to negotiate with buyers on concessions like cash for repairs or closing cost assistance.”

Sturtevant also said that these minor decreases in rates are expected to continue throughout the rest of the year. But she cautioned that “it is likely that they will remain in the mid-6% range for much of the year.”