Please ensure Javascript is enabled for purposes of website accessibility
Average US Rate on a 30-Year Mortgage Dips to 6.64% for the Second Drop in 2 Weeks
gvw_ap_news
By Associated Press
Published 2 months ago on
April 3, 2025

A for sale sign stands outside a home on the market in the Alamo Placita neighborhood Tuesday, Aug. 27, 2024, in central Denver. (AP File)

Share

Getting your Trinity Audio player ready...

The average rate on a 30-year mortgage in the U.S. edged lower for the second week in a row, a modest but welcome boost for prospective home shoppers in the midst of the spring homebuying season.

The rate fell to 6.64% from 6.65% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.82%.

The average rate has mostly trended lower since reaching just over 7% in mid-January. When mortgage rates decline, they boost homebuyers’ purchasing power.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, pulling the average rate down to 5.82% from 5.89% last week. A year ago, it averaged 6.06%, Freddie Mac said.

Mortgage rates are influenced by factors including bond market investors’ expectations for future inflation, global demand for U.S. Treasury and the Federal Reserve’s interest rate policy decisions.

The overall decline this year in the average rate on a 30-year mortgage loosely follows moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

Yield Nearing 4.8% in January

The yield, which was nearing 4.8% in mid-January, has mostly fallen since then, amid signs that the economy is slowing and worries that tariffs imposed by the Trump administration on goods imported from around the globe could hurt economic growth and fuel inflation.

The yield slid to 4.06% Thursday as a sharp sell-off on Wall Street following the White House’s latest and most severe volley of tariffs fueled expectations among bond investors that the Fed may have to cut its main interest rate if the economy sours.

“The 10-year Treasury has dipped even further this morning as investors are exiting the stock market, so it’s likely that mortgage rates will continue to come down in the coming months as a result,” said Joel Berner, senior economist at Realtor.com. “This shock to the system will be felt in the housing market for the rest of the year.”

Recent forecasts by housing economists generally called for the average rate on a 30-year mortgage to remain around 6.5% this year.

Lower mortgage rates can help spur home sales by make homeownership more affordable. At the same time, many Americans may put off buying a home if they’re worried about losing their job or taking a hit on their stock portfolio during an economic downturn.

“It remains to be seen whether relief from mortgage rates will spur buyers to make a move in 2025, or if the broader economic conditions will slow things down,” Berner said.

Sales Slump in US Housing Market

The U.S. housing market has been in a sales slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years.

Easing mortgage rates and more homes on the market nationally helped drive sales higher in February from the previous month, though they were down year-over-year.

Even with mortgage rates easing this year, rising home prices are helping to drive up the cost of homeownership. The typical monthly payment made by U.S. homebuyers climbed to a record-high $2,802 in the four weeks that ended March 20, according to Redfin.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno County Man Killed in Head-On Collision Identified

DON'T MISS

California Allocates $56 Million to Combat Youth Homelessness

DON'T MISS

Let the Hunt for Fresno County Fruit Trail Delights Begin!

DON'T MISS

Fresno Police Arrest Suspect in Southwest Shooting Through Valley Crime Stoppers’ Tip

DON'T MISS

18 Injured in Knife Attack in Hamburg, Report Says

DON'T MISS

White House National Security Council Hit by More Firings, Sources Say

DON'T MISS

All Six People Aboard Plane That Crashed in San Diego Confirmed Dead

DON'T MISS

Explore the Wild Side of Route 66 With These Natural Wonders

DON'T MISS

Billy Joel Cancels Touring After Being Diagnosed With a Brain Disorder

DON'T MISS

Justice Department Reaches Deal to Allow Boeing to Avoid Prosecution Over 737 Max Crashes

UP NEXT

California Allocates $56 Million to Combat Youth Homelessness

UP NEXT

Let the Hunt for Fresno County Fruit Trail Delights Begin!

UP NEXT

Fresno Police Arrest Suspect in Southwest Shooting Through Valley Crime Stoppers’ Tip

UP NEXT

18 Injured in Knife Attack in Hamburg, Report Says

UP NEXT

White House National Security Council Hit by More Firings, Sources Say

UP NEXT

All Six People Aboard Plane That Crashed in San Diego Confirmed Dead

UP NEXT

Explore the Wild Side of Route 66 With These Natural Wonders

UP NEXT

Billy Joel Cancels Touring After Being Diagnosed With a Brain Disorder

UP NEXT

Justice Department Reaches Deal to Allow Boeing to Avoid Prosecution Over 737 Max Crashes

UP NEXT

Fresno County Wildland Fire Burns One Acre Before Being Contained

9 of a Doctor’s 10 Children Are Killed in Israel’s Latest Strikes in Gaza

1 day ago

Daisy Can’t See or Hear, but She Knows How to Love

1 day ago

How to Travel Without a Phone

1 day ago

Chukchansi Casino Hosts Job Fair to Fill 80 Food and Beverage Positions

1 day ago

California’s High Living Costs and Rampant Poverty Sharpen Its Economic Divide

1 day ago

Fresno County Man Killed in Head-On Collision Identified

2 days ago

California Allocates $56 Million to Combat Youth Homelessness

2 days ago

Let the Hunt for Fresno County Fruit Trail Delights Begin!

2 days ago

Fresno Police Arrest Suspect in Southwest Shooting Through Valley Crime Stoppers’ Tip

2 days ago

18 Injured in Knife Attack in Hamburg, Report Says

2 days ago

Clovis Memorial Run Brings the Community Together, Supports Senior Programs

The annual Clovis Memorial Run brought runners and walkers to the new Clovis Senior Activity Center on May 24, featuring multiple races that...

21 hours ago

21 hours ago

Clovis Memorial Run Brings the Community Together, Supports Senior Programs

1 day ago

Attorney Error Lowers Fees in Fresno Measure P Case

1 day ago

Trump Gives Commencement Address at West Point, Stressing a New Era

1 day ago

9 of a Doctor’s 10 Children Are Killed in Israel’s Latest Strikes in Gaza

Blind and deaf, Daisy is a gentle senior pup who has blossomed in foster care and is now searching for a loving home. (Mell's Mutts)
1 day ago

Daisy Can’t See or Hear, but She Knows How to Love

1 day ago

How to Travel Without a Phone

1 day ago

Chukchansi Casino Hosts Job Fair to Fill 80 Food and Beverage Positions

California Wealth and Poverty
1 day ago

California’s High Living Costs and Rampant Poverty Sharpen Its Economic Divide

Help continue the work that gets you the news that matters most.

Search

Send this to a friend