Mortgage rates

Treasury Secretary Scott Bessent wants to focus on bringing down long-term interest rates, not the overnight ones set by the Federal Reserve.

The 30-year conforming fixed-rate mortgage is at its lowest point since the end of December, as Treasury yields are 29 basis points lower since Feb. 19.

Purchase volume was flat last week and up just 3% compared to the same time a year ago when the market faced similar rates in the high 6% range.

The increase in refinance originations in the fourth quarter trickled down to the title insurers, which reported year-over-year gains in new orders.

"Red flags are emerging for the US economy," said Elias Haddad, senior market strategist at Brown Brothers Harriman. "Another month or two of poor US economic data would deliver a blow to the US exceptionalism narrative."

The potential impacts of import tariffs cloud the outlook, though, and could lead mortgage rates to surge and fall throughout the coming year.

The average 30-year fixed-rate mortgage of 6.85% is just five basis points lower than the same time last year, following wider swings in the past 12 months.

Overall home loan application activity fell 6.6% last week, according to the Mortgage Bankers Association, with volume resembling the frigid start to the year.

While Freddie Mac's weekly survey showed 30-year rates falling, other indicators paint a mixed picture for mortgage lenders and borrowers.

Most participants in a monthly Wolters Kluwer survey no longer think the next short-term rate reduction will be in March.

The 17.2% of mortgage borrowers nationwide with interest rates equal to, or greater than 6%, is the largest share since 2016, according to Redfin.

The 30-year fixed rate mortgage continues to slip away from the 7% mark, Freddie Mac said, but experts still expect them to stay higher for longer.

Treasury Secretary Scott Bessent said the Trump administration's focus with regard to bringing down borrowing costs is 10-year Treasury yields, rather than the Federal Reserve's benchmark short-term interest rate.

After repeatedly blasting Janet Yellen last year over her department's strategy for issuing federal debt, it's now up to Scott Bessent to make the call on sales of Treasuries, with bond dealers conflicted over what he'll do in a pivotal release due Wednesday.

Mortgage rates declined by one basis point this week, not enough to change the equation to bring consumers back into the housing market, Freddie Mac said.

Mortgage experts were expecting the first FOMC meeting under President Trump would have more significance in the long run than short-term, with some wild cards.

Mortgage experts were expecting the first FOMC meeting under President Trump would have more significance in the long run than short-term, with some wild cards.

Nearly two-thirds of Americans said stubbornly high mortgage rates are keeping them from moving, so they are planning to fix up their homes, Angi found.

With the growth in the use of government products, further increases in late payment rates over the coming year are likely, ICE Mortgage Technology said.

The 30-year fixed rate mortgage fell back under 7% this week, the Freddie Mac survey found. But Treasury yields started rising again in recent days.