Robert Besser
24 Mar 2025, 06:34 GMT+10
WASHINGTON, D.C.: The cost of borrowing for a home in the U.S. ticked up again this week, marking the second straight increase as homebuyers navigate an already challenging market.
The average rate on a 30-year fixed mortgage rose to 6.67 percent from 6.65 percent last week, mortgage buyer Freddie Mac reported this week. Though slightly higher, the current rate remains below the 6.87 percent average seen a year ago.
"The 30-year fixed-rate mortgage has stayed under 7 percent for nine consecutive weeks, which is helpful for potential buyers and sellers alike," said Sam Khater, Freddie Mac's chief economist.
Rates on 15-year fixed mortgages, often preferred by homeowners looking to refinance, also inched up to 5.83 percent from 5.8 percent last week. A year ago, the average was 6.21 percent.
Mortgage rates generally follow the movement of the 10-year Treasury yield, which has been fluctuating amid concerns over economic growth and the Trump administration's recent tariff decisions. The yield, which had approached 4.8 percent in mid-January, has since eased to around 4.23 percent as of March 20.
While tariffs could push inflation higher—potentially driving up mortgage rates—investors remain cautious about the long-term economic impact. The Federal Reserve has held its key interest rate steady this year after multiple cuts in 2024, signaling that it expects to lower rates twice more in 2025 despite persistent inflation concerns.
"In the near term, we expect mortgage rates to remain in a fairly narrow range, between 6.5 percent and seven percent, which should support the spring housing market," said Mike Fratantoni, chief economist at the Mortgage Bankers Association.
Higher mortgage rates have contributed to a prolonged slowdown in home sales, with last year marking the weakest level in nearly three decades. Sales of previously owned homes did see a modest 4.2 percent increase in February compared to the prior month but remained down 1.2 percent from a year ago, according to the National Association of Realtors.
Get a daily dose of Tucson Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Tucson Post.
More InformationWASHINGTON, D.C.: The cost of borrowing for a home in the U.S. ticked up again this week, marking the second straight increase as homebuyers...
CUPERTINO, CALIFORNIA: Apple's ambitious foray into streaming is proving costly, with the company reportedly losing over US$1 billion...
NEW YORK CITY, New York: Gold's record-breaking rally is expected to continue, with Citi Research increasing its three-month price...
BOSTON, Massachusetts: A routine safety mechanism at data centers nearly triggered a regional power crisis last summer, highlighting...
PARIS, France: Air France is making a bold bet on luxury travel with the launch of an upgraded first-class suite, aiming to attract...
WASHINGTON, D.C.: U.S. home construction and manufacturing activity surged in February, but rising costs from tariffs and economic...
WASHINGTON, D.C.: The U.S. Department of Agriculture (USDA) has announced plans to invest up to US$100 million in research to develop...
WASHINGTON, D.C.: U.S. factories ramped up production in February, with a sharp rebound in motor vehicle output helping to drive manufacturing...
(Photo credit: Jim Rassol-Imagn Images) Fred VanVleet scored 13 of his game-high 37 points in the fourth quarter as the Houston Rockets...
(Photo credit: Troy Wayrynen-Imagn Images) Deni Avdija scored a season-high 36 points on 12-of-16 shooting to lead the Portland Trail...
(Photo credit: Joe Camporeale-Imagn Images) Kevin Durant scored 42 points, including a clutch 3-pointer that helped snuff out a late...
(Photo credit: Rick Scuteri-Imagn Images) Jacob Wilson collected three of the Athletics' 16 hits as the A's routed a Kansas City...