Mortgage rates move lower for another week

The average 30-year fixed-rate mortgage has fallen to its lowest level in two months - Image (c) ConsumerAffairs

Falling Treasury yields are boosting home affordability

The yield on the 10-year Treasury bond continues to inch lower and that’s having the effect of pulling down mortgage rates. The bond’s yield has fallen from 4.66% on Feb. 12 to end the month at around 4.27%.

Because of that, mortgage rates have declined over the last two weeks. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.76% this week.

“This week, mortgage rates decreased to their lowest level in over two months,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home.”

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Current rates

The 30-year FRM averaged 6.76% as of February 27, 2025, down from last week when it averaged 6.85%. A year ago at this time, the 30-year FRM averaged 6.94%.

The 15-year FRM averaged 5.94%, down from last week when it averaged 6.04%. A year ago at this time, the 15-year FRM averaged 6.26%.