Housing News

Mortgage Rates Barely Budge as the Housing Market Heats Up

Mortgage interest rates barely budged this week as the housing market enters the historically busy spring homebuying season.

Rates ticked up to an average 6.65% for 30-year, fixed-rate mortgages in the week ending March 13, according to Freddie Mac data. They were up ever so slightly from 6.63% in the previous week, breaking a seven-week streak of lower rates.

However, rates were lower compared to a year ago around this time when they averaged 6.74%.

“Despite volatility in the markets, the 30-year fixed-rate mortgage remained essentially flat from last week,” Freddie Mac Chief Economist Sam Khater said in a statement. “Mortgage rates continue to be relatively low versus the last few months and homebuyers have responded.”

Freddie Mac reported homebuyers submitted about 5% more mortgage applications than this time last year.

“The combination of modestly lower mortgage rates and improving [housing] inventory is a positive sign for homebuyers in this critical spring homebuying season,” Khater said.

Rates have been falling as a result of uncertainty in the economy.

In addition, annual inflation slowed in February, while the unemployment rate edged up, according to government data.

“Going forward, we may see a bit more relief from mortgage rates,” Realtor.com Senior Economist Joel Berner wrote in a commentary. “Slowing inflation gives the central bank more leeway to allow rates to fall. This is jeopardized, of course, by the ever-changing landscape of trade policy, with the Trump administration frequently announcing, rescinding, and reinstating new tariffs.”

Lower rates could make buying a home this spring a little more affordable for buyers.

“Despite this minor bump, rates are still at their lowest levels of the year,” Bright MLS Chief Economist Lisa Sturtevant said in a statement. The multiple listing service covers the mid-Atlantic region. “If they continue to fall, could provide a welcome boost as the spring housing market kicks off.”