Mortgage Rates and Applications Both Decrease

On Thursday, April 24, 2025, Freddie Mac released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.81 percent, down from last week when it averaged 6.83 percent. A year ago at this time, the 30-year FRM averaged 7.17 percent.

The 15-year fixed-rate mortgage averaged 5.94 percent, down from last week when it averaged 6.03 percent. A year ago at this time, the 15-year FRM averaged 6.44 percent.

“The average mortgage rate decreased slightly this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Over the last couple of months, the 30-year fixed-rate mortgage has fluctuated less than 20 basis points, and this stability continues to bode well for buyers and sellers alike.”

According to the Mortgage Bankers Association (MBA), mortgage applications decreased 12.7 percent from one week earlier. The Refinance Index decreased 20 percent from the previous week and was 43 percent higher than the same week one year ago. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 6 percent higher than the same week one year ago.

“Overall mortgage application activity declined last week, as rates increased to their highest level in two months. The 30-year fixed rate rose for the second straight week to 6.9 percent, an almost 30-basis-point increase over two weeks,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “These higher rates drove a 20 percent drop in refinance applications, especially for higher balance loans, with the average loan size falling substantially. The refinance share of applications at 37.3 percent was the lowest since January. Similar to the previous week, economic uncertainty and rate volatility impacted prospective homebuyers as we saw a 7 percent decline in purchase applications. Both Conventional and government purchase activity fell relative to the week before, but the overall level of purchase applications was still 6 percent higher than a year ago.”

More housing and market news

According to the MBA, the total number of loans now in forbearance decreased slightly in March. “Overall mortgage performance improved in March, with more borrowers making their mortgage payments and fewer borrowers in forbearance and loan workouts compared to the prior month,” said MBA’s Vice President of Industry Analysis Marina Walsh, CMB. “This monthly improvement may be tied to several factors such as receipt of tax refunds and homeowner recovery from natural disasters.”

Added Walsh, “The labor market is relatively healthy, which is helping mortgage performance remain strong. However, compared to one year ago, there are fewer borrowers current on their mortgages. Also, more borrowers in loan workouts — particularly those with FHA loans — are having difficulty staying current.”

MBA’s Builder Application Survey (BAS) data for March shows mortgage applications for new home purchases increased 5.5 percent compared with a year ago. Compared with February 2025, applications increased by 14 percent. 

“Applications for new home purchases increased in March, consistent with typical seasonal patterns and supported by mortgage rates that had been drifting lower,” said MBA’s Kan. “The growing inventory of newly built, move-in ready homes supported homebuyer interest over the month, pushing the index higher than last year’s levels. Our estimate of seasonally adjusted new home sales saw a slight decline in March but were stronger than last year’s pace of sales.”

Additional mortgage activity

• The refinance share of mortgage activity decreased to 37.3 percent of total applications from 41.3 percent the previous week.
• The adjustable-rate mortgage (ARM) share of activity decreased to 7.5 percent of total applications.
• The FHA share of total applications increased to 16.7 percent from 15.8 percent the week prior.
• The VA share of total applications decreased to 13.4 percent from 13.7 percent the week prior.
• The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.

This week in mortgage rates

Rates decrease slightly. Here’s how average fixed rates broke down:

• 30-year fixed-rate loans: 6.81% (down from 6.83%)
• 15-year fixed-rate loans: 5.94% (down from 6.03%)

Check back next week for the most up-to-date mortgage and housing news.

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April 17 – Mortgage Rates Up But Stay Under Seven Percent, Applications Decrease Across the Board

On Thursday, April 17, 2025, Freddie Mac released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.83 percent, up from last week when it averaged 6.62 percent. A year ago at this time, the 30-year FRM averaged 7.1 percent.

The 15-year fixed-rate mortgage averaged 6.03 percent, up from last week when it averaged 5.82 percent. A year ago at this time, the 15-year FRM averaged 6.39 percent.

“The 30-year fixed-rate mortgage ticked up but remains below the 7% threshold for the thirteenth consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “At this time last year, rates reached 7.1% while purchase application demand was 13% lower than it is today, a clear sign that this year’s spring homebuying season is off to a stronger start.”

According to the Mortgage Bankers Association (MBA), mortgage applications decreased 8.5 percent from one week earlier. The Refinance Index decreased 12 percent from the previous week and was 68 percent higher than the same week one year ago. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 13 percent higher than the same week one year ago.

“Mortgage rates moved 20 basis points higher last week, abruptly slowing the pace of mortgage application activity with refinance volume dropping 12 percent and purchase volume falling 5 percent for the week. Purchase volume remains almost 13 percent above last year’s level, but economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “One notable change last week was the full percentage point increase in the ARM share. Given the jump in rates, more borrowers are opting for the lower initial rates that come with an ARM, with initial fixed rates closer to 6 percent in our survey last week. The ARM share at 9.6 percent was the highest since November 2023, and this reflects the share of units. On a dollar basis, almost a quarter of the application volume last week was for ARMs, as borrowers with larger loans are even more likely to opt for an ARM.”

More housing and market news

Independent mortgage bankers reported an average profit of $443 on each loan they originated in 2024, up from an average loss of $1,056 per loan in 2023. “After two preceding years of net losses, net production income was back in the black in 2024,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Production revenues improved, and per-loan costs decreased as volume picked up, particularly in the second half of the year.”

Additional mortgage activity

• The refinance share of mortgage activity decreased to 41.3 percent of total applications from 43.6 percent the previous week.
• The adjustable-rate mortgage (ARM) share of activity increased to 9.6 percent of total applications.
• The FHA share of total applications decreased to 15.8 percent from 16.3 percent the week prior.
• The VA share of total applications decreased to 13.7 percent from 15.7 percent the week prior.
• The USDA share of total applications remained unchanged at 0.5 percent from the week prior.

This week in mortgage rates

Rates tick up. Here’s how average fixed rates broke down:

• 30-year fixed-rate loans: 6.83% (up from 6.62%)
• 15-year fixed-rate loans: 6.03% (up from 5.82%)

Check back next week for the most up-to-date mortgage and housing news.

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April 10 – 30-Year Fixed Rate Continues Down and Applications Jump Up

On Thursday, April 10, 2025, Freddie Mac released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.62 percent, down slightly from last week when it averaged 6.64 percent. A year ago at this time, the 30-year FRM averaged 6.88 percent. 

The 15-year fixed-rate mortgage averaged 5.82 percent, unchanged from last week. A year ago at this time, the 15-year FRM averaged 6.16 percent.

“The average 30-year fixed-rate mortgage continues to trend down, remaining under 7% for the twelfth consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “As purchase applications continue to climb, the spring homebuying season is shaping up to look more favorable than last year.”

According to the Mortgage Bankers Association (MBA), mortgage applications increased 20 percent from one week earlier. The Refinance Index increased 35 percent from the previous week and was 93 percent higher than the same week one year ago. The unadjusted Purchase Index increased 10 percent compared with the previous week and was 24 percent higher than the same week one year ago. 

“Mortgage applications increased by 20 percent to its highest level since September 2024, driven by purchase and refinance applications picking up in a volatile week where economic uncertainty caused rates to drop across the board. The 30-year fixed mortgage rate was 6.61 percent, the lowest rate since October 2024,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Both homebuyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24 percent higher than a year ago to the strongest pace since January 2024. Refinance applications rose by 35 percent to the highest level in six months, as borrowers with larger loan sizes tend to be more sensitive to rate changes. The average refinance loan size jumped to its second highest in the survey at $399,600.”

More housing and market news

According to MBA’s Mortgage Credit Availability Index (MCAI), mortgage credit availability rose by 2.5 percent in March. “Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance,” said MBA’s Kan. “The credit supply growth was primarily in Conventional programs, with Jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month. Additionally, non-QM credit availability continues to grow.”

Additional mortgage activity

• The refinance share of mortgage activity increased to 43.6 percent of total applications from 38.6 percent the previous week.
• The adjustable-rate mortgage (ARM) share of activity increased to 8.6 percent of total applications.
• The FHA share of total applications increased to 16.3 percent from 15.8 percent the week prior.
• The VA share of total applications increased to 15.7 percent from 14.4 percent the week prior.
• The USDA share of total applications remains unchanged at 0.5 percent from the week prior.

This week in mortgage rates

Little movement in rates. Here’s how average fixed rates broke down:

• 30-year fixed-rate loans: 6.62% (down from 6.64%)
• 15-year fixed-rate loans: 5.82% (unchanged)

Check back next week for the most up-to-date mortgage and housing news.

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