The decline in mortgage rates is picking up speed

Mortgage rates recorded their biggest drop this week since mid-September - Image (c) ConsumerAffairs

This weeks drop was the largest in nearly six months

It may seem counterintuitive, but growing economic concerns are pulling down mortgage rates. When investors seek a safe haven in the bond market, the yield on the 10-year Treasury bond falls – and so do mortgage rates.

Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.63% this week, the third decline in as many weeks.

“As the spring homebuying season gets underway, the 30-year fixed-rate mortgage saw the largest weekly decline since mid-September,” Sam Khater, Freddie Mac’s chief economist, said in a press release. 

“The decline in rates increases prospective homebuyers’ purchasing power and should provide a strong incentive to make a move. Additionally, this decline in rates is already providing some existing homeowners the opportunity to refinance. In fact, the refinance share of market mortgage applications released this week reached nearly 44%, the highest since mid-December.”

The latest average rates

  • The 30-year FRM averaged 6.63% as of March 6, 2025, down from last week when it averaged 6.76%. A year ago at this time, the 30-year FRM averaged 6.88%.

  • The 15-year FRM averaged 5.79%, down from last week when it averaged 5.94%. A year ago at this time, the 15-year FRM averaged 6.22%.

Sign up below for The Daily Consumer, our newsletter on the latest consumer news, including recalls, scams, lawsuits and more.