Mortgage rates have shown a modest decrease, with the average for 30-year fixed loans dropping to 6.65%. This stability is encouraging for buyers, as indicated by a rise in purchase applications. However, challenges remain due to rising home prices and concerns over inflation linked to trade policies. Economists suggest that the current rate environment could impede home sales compared to previous years, although a slight recovery in sales is anticipated for 2025, hinting at a more favorable market for buyers.
"Recent mortgage rate stability continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications," says Sam Khater, Freddie Mac's chief economist.
"Uncertainty surrounding the Trump administration's trade policy is also contributing, as the back-and-forth on tariffs continues to stoke fears about inflation and a potential economic downturn," adds Berner.
"So far, the first quarter of 2025 has presented more financial challenges to homebuyers than it has opportunities," says Berner.
"The Freddie Mac rate has been seesawing in part because the recovering stock market has been pulling investors out of the debt market," says Berner.
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