Freddie Mac Mortgage Rates—March 27, 2025
What happened to mortgage rates this week
The Freddie Mac rate for a 30-year fixed-rate mortgage dipped slightly this week, falling 2 basis points from 6.67% to 6.65%. We know that many prospective buyers are right on the margin of being able to afford a home purchase, so this minor improvement might be just what some of them were hoping for. However, this week’s positive news won’t move the needle for most buyers, especially first-time homebuyers. Rates are being held in this higher range due to the 10-year Treasury yield picking up some steam this week as the stock market started to recover, pulling investors out of the debt market and lowering bond prices. Uncertainty surrounding the Trump administration’s trade policy is also contributing, as the back-and-forth on tariffs stokes fears about inflation and a potential economic downturn. Recent mortgage rates in the high 6% and low 7% range have proven to slow home sales relative to last year, so seeing them remain in this range this week will spell more bad news in the housing market.
What it means for the housing market
Prospective homebuyers are facing growing prices across the country at the same time that financing their home purchase is more expensive at these high mortgage rates. Home affordability is seriously constrained, and the dream of homeownership feels out of reach to over 1 million Americans who are not striking out on their own because they cannot afford a mortgage payment on a house that meets their needs. So far, the first quarter of 2025 has presented more financial challenges to homebuyers than it has opportunities. That being said, we still forecast more home sales in 2025 than in 2024, and that improvement will likely start to be seen in the coming months as the peak homebuying season kicks off.
