Mortgage rates ticked down slightly again this week during a quieter period for economic data releases.
The average 30-year fixed-rate mortgage was 6.85% this week through Wednesday, according to Freddie Mac data, compared with 6.87% a week earlier. The average 15-year mortgage rate was 6.04%, down from 6.09%.
Financial markets largely brushed off hotter-than-expected inflation data released last week, and there were no major releases this week to change investors’ thinking on the path of inflation and the Fed’s rate cuts. Despite some daily fluctuations, 10-year Treasury yields — which closely track mortgage rates, are little changed from a week ago at around 4.5%.
Read more: Mortgage and refinance rates today: Expect rates to stay high
Mortgage rates have been slowly drifting lower in recent weeks, but remain stuck near 7%, a level that makes affordability challenging for many prospective homebuyers.
Mortgage applications to purchase a home tumbled 6% through Friday compared with a week earlier, according to the Mortgage Bankers Association (MBA). Refinancing applications declined 7%. Together, applications were at the weakest level they’ve been all year.
“Many prospective homebuyers are waiting for supply and affordability conditions to improve meaningfully before jumping into the market,” MBA President and Chief Executive Officer Bob Broeksmit said in a statement.
Still, Sam Khater, Freddie Mac’s chief economist, said in a statement that a fifth straight week that rates have stayed below 7% might give buyers and sellers more confidence as the traditionally busy spring home-buying season begins.
“This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season,” he said.
Read more: 2025 housing market: Is it a good time to buy a house?
Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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