WASHINGTON — Mortgage rates fell again this week to their lowest level in more than three years, according to Freddie Mac.
The average rate on a 30-year fixed mortgage slipped to 6.06% from 6.16% last week, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, the rate averaged 7.04%. The latest reading is the lowest since Sept. 15, 2022, when the 30-year rate averaged 6.02%.
“Late last week, mortgage rates dropped, driving the weekly average down to its lowest level in more than three years,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “The impacts are noticeable, as weekly purchase applications and refinance activity have jumped, underscoring the benefits for both buyers and current owners. It’s clear that housing activity is improving and poised for a solid spring sales season.”
Decline Follows Move by President
As the CU Daily has reported, the decline in rates comes as President Donald Trump has moved to push down housing costs by ordering the Federal Housing Finance Agency, which oversees Freddie Mac and Fannie Mae, to purchase $200 billion in bonds issued by the two mortgage finance companies.
FHFA Director William Pulte said the agency began with an initial $3 billion round of purchases.
Trump has also proposed banning large institutional investors from purchasing single-family homes, arguing the practice has pushed homeownership out of reach for many Americans. In a post on his Truth Social platform, Trump said homeownership has long been “the pinnacle of the American Dream,” but rising costs have made it increasingly unattainable, particularly for younger buyers.
Rate Falls on 15-Year
Meanwhile, the average rate on a 15-year fixed mortgage fell to 5.38% from 5.46% last week, Freddie Mac said.
