While mortgage rates fell by a significant amount last week according to several indicators, more timely metrics are indicative that things are turning around again.
It was the seventh consecutive week of declines in the Freddie Mac Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage averaged 6.63% as of March 6. That compared with
The 15-year FRM was 5.79%, down 15 basis points from the week of Feb. 27 when it averaged 5.94%. A year ago it averaged 6.22%.
"As the spring home buying season gets underway, the 30-year fixed-rate mortgage saw the largest weekly decline since mid September," said Sam Khater, Freddie Mac's chief economist, in a press release. "The decline in rates increases prospective home buyers' purchasing power and should provide a strong incentive to make a move."
The Freddie Mac data came out one day after the Mortgage Bankers Association Weekly Application Survey
"Many buyers this spring face high home prices, limited listings and ongoing uncertainty about the economy," said Broeksmit. "Despite these challenges, MBA expects more home buying in 2025, with purchase originations rising 10% to $1.4 trillion."
As of 11 a.m. Eastern time Thursday morning, the 10-year Treasury yield was 4.33%, an increase of 6 basis points from the prior day's close. Earlier in the day it was at 4.34%, tying its highest level since Feb. 25.
Lender Price product and pricing engine data on the National Mortgage News website put the 30-year FRM at 6.801%, up nearly 20 basis points on the day. Last week at the same time, it was 2 basis points lower at 6.787%.
Zillow's rate tracker had the 30-year FRM up 3 basis points on the day, to 6.33%. That is also 1 basis point higher than the previous week's average of 6.32%.
February's dip in mortgage rates should attract both buyers and sellers back into the market, consistent with what happened the last time
"Of course, rates are not guaranteed to stay low," Ng said in a Wednesday evening statement. "Right now markets are spooked on economic growth, but the market narrative could easily shift again to upside inflation concerns, and cause mortgage rates to rise again."
Meanwhile, market sentiment is shifting because of persistent economic uncertainty, said Samir Dedhia, CEO of One Real Mortgage, in a statement. That is going to lead to a more aggressive Federal Open Market Committee when it comes to short-term rate reductions.
"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, a notable shift from earlier projections," Dedhia said.
"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," he continued.
