Mortgage rates

The average 30-year fixed-rate mortgage fell to its lowest point so far in 2025, driving refinance activity 83% higher than the same time a year ago.

Treasury Secretary Scott Bessent expects the U.S. housing market to quickly pick up steam after recent indicators came in below forecasts.

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.