Average US Rate on a 30-Year Mortgage Edges Higher
The average rate on a 30-year mortgage in the U.S. edged higher this week, ending a seven-week slide that helped ease borrowing costs for home shoppers leading into the spring homebuying season.
Current Mortgage Rates
The rate averaged 6.65% this week, up from 6.63% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.74%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also ticked up this week. The average rate rose to 5.8% from 5.79% last week. A year ago, it averaged 6.16%, Freddie Mac said.
Factors Influencing Mortgage Rates
Mortgage rates are influenced by several factors, including bond market investors’ expectations for future inflation, global demand for U.S. Treasurys and the Federal Reserve’s interest rate policy decisions. After climbing to just above 7% in mid-January, the average rate on a 30-year mortgage declined through last week, echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
10-Year Treasury Yield
The yield, which was approaching 4.8% in mid-January, has been mostly falling since then, reflecting worries about the economy’s growth and the fallout from the Trump administration’s decision to impose tariffs on imported goods from many of the nation’s key trade partners. The yield was at 4.31% in midday trading Thursday.
Impact on the Housing Market
So far, the pullback in rates hasn’t improved the affordability equation for many would-be homebuyers, keeping the housing market in a sales slump. Still, any easing in borrowing costs is welcome relief for home shoppers, especially as the number of homes on the market is up sharply compared to a year ago and prices are rising more slowly nationally.
Positive Signs for Homebuyers
“The combination of modestly lower mortgage rates and improving inventory is a positive sign for homebuyers in this critical spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist.
Conclusion
In conclusion, the average US rate on a 30-year mortgage has edged higher, ending a seven-week slide. While this may not significantly impact the affordability equation for many would-be homebuyers, any easing in borrowing costs is a positive sign for home shoppers. As the spring homebuying season approaches, it remains to be seen how the housing market will respond to these changes.
FAQs
Originally Published: March 13, 2025 at 12:09 PM EDT
By ALEX VEIGA, AP Business Writer
Q: What is the current average rate on a 30-year mortgage in the US?
A: The current average rate on a 30-year mortgage in the US is 6.65%.
Q: How has the 10-year Treasury yield affected mortgage rates?
A: The 10-year Treasury yield has been falling since mid-January, reflecting worries about the economy’s growth, which has led to a decline in mortgage rates.
Q: What is the outlook for the housing market?
A: The housing market is expected to remain in a sales slump, but the combination of modestly lower mortgage rates and improving inventory is a positive sign for homebuyers.
