Mortgage rates fall for fifth week in a row, hover near 7%

Published On Feb 20, 2025, 1:36 PM

Mortgage rates in the U.S. have declined to an average of 6.85% for a 30-year fixed mortgage, marking the fifth consecutive week of decreases, according to Freddie Mac. This stability in mortgage rates, just below 7%, is seen as favorable for potential home buyers and sellers approaching the spring homebuying season. The 15-year fixed mortgage rate also fell to 6.04%.

Stock Forecasts

XHB

Positive

The decline in mortgage rates typically leads to increased demand for home buying and can be beneficial for companies connected to the housing market, such as home builders and real estate investment trusts (REITs). This trend may also attract investors interested in sectors related to housing and mortgages.

Related News

Delinquency rates on Federal Housing Administration and Veterans Affairs loans reached 11.03% and 4.7%, respectively, at the end of last year, according to the Mortgage Bankers Association, breaching pre-pandemic levels.

The bond yields that underpin mortgage rates have whipped around amid tariff threats and new inflation data. The average rate on a 30-year loan dipped this week but remains near 7%.

A growing property insurance crisis may make it hard to get a mortgage in parts of the country in the coming decades, Federal Reserve Chairman Jerome Powell said Tuesday in testimony before Congress.