Mortgage rates remained basically flat this week, following two straight weeks of increases.
According to data from Freddie Mac, the average rate on a 30-year fixed mortgage was 6.74% for the week ending Wednesday, down just a single basis point from 6.75% the week prior. The average 15-year fixed mortgage rate was 5.87%, down five basis points from 5.92% last week.
Read more: Will mortgage rates ever be 3% again?
“Overall, the backdrop for the housing market is positive as the economy continues to perform well with solid employment and income growth,” said Sam Khater, Freddie Mac’s chief economist.
Applications to purchase a home were up 3% from a week ago, according to data from the Mortgage Bankers Association, while refinancings fell 3%.
“We expect overall demand to ebb and flow as long as mortgage rates remain volatile due to the ongoing economic uncertainty,” said Bob Broeksmit, MBA CEO and president.
As mortgage rates remain elevated, home sales could hit an all-time low this year. According to research by Realtor.com, sales volume for existing homes is expected to fall 1.5% annually, to just 4 million transactions. At the start of 2025, sales volume for homes had been expected to increase slightly from last year’s level of 4.06 million — another all-time low.
Learn more: Selling your home at a loss? Everything you need to know before you list.
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