Fri Feb 28 11:10:00 UTC 2025: ## Mortgage Rates Ease for Sixth Straight Week, Offering Glimpse of Hope for Homebuyers
**WASHINGTON, D.C. —** Good news for prospective homebuyers: The average rate on a 30-year fixed-rate mortgage has fallen for the sixth consecutive week, dropping to 6.76% from 6.85% last week, according to Freddie Mac. This marks the lowest rate since December 19th. The decline, while welcome, hasn’t solved the affordability crisis facing many, particularly first-time buyers.
Fifteen-year fixed-rate mortgages also saw a decrease, falling to 5.94% from 6.04% the previous week. Although rates are down from a year ago, they remain significantly higher than the record low of 2.65% seen four years ago.
While the decreasing rates and a modestly increasing housing inventory – up to its highest level since June 2020, according to Redfin – offer a glimmer of hope, many potential buyers are still priced out of the market due to high home prices. January saw a decline in sales of previously occupied homes, reflecting the ongoing affordability challenges. Further sales declines are anticipated in the coming months based on pending home sales data.
Freddie Mac’s chief economist, Sam Khater, described the combination of lower rates and improved inventory as an “encouraging sign,” but acknowledged the persistent affordability issues. The recent drop in mortgage rates mirrors a decline in the 10-year Treasury yield, a key factor influencing loan pricing. This yield has eased recently, partly due to investor concerns about potential economic impacts of various policy proposals.
First Piper 