Freddie Mac Mortgage Rates—Feb. 13, 2025
What happened to mortgage rates this week
The Freddie Mac rate for a 30-year mortgage retreated slightly this week, falling to 6.87% from 6.89%. This is the lowest reading of the rate so far in 2025, but mortgage rates remain higher than they were one year ago at this time. The 30-year fixed rate dropped despite the yield on the 10-year Treasury note rising over the past week as the stock market remained strong and inflation fears persisted, as a result of the Trump administration’s tariff threats, which we would expect to put upward pressure on mortgage rates. Given Wednesday’s news of consumer inflation coming in higher than expected, mortgage rates are unlikely to drop much more significantly anytime soon, as debt market investors demand higher returns to account for weakening spending power and the Federal Reserve is unlikely to lower interest rates.
What it means for the housing market
The days of sub-4% mortgage rates are over, and if inflation continues to resist being stamped out, they might not be back for a long time. Prospective homebuyers should not expect much relief from high mortgage rates in the near future, and recent buyers who were told in the past few years to “marry the house and date the rate” (meaning they would have opportunities to refinance coming soon) might find themselves wedded to a mortgage in the 6% to 7% range for longer than they originally hoped.
The good news for buyers is that the median list price across the country is falling and more homes were on the market this January than during any January since before the COVID-19 pandemic. Saving up for as large of a down payment as possible is key in this high mortgage rate environment, so that the smallest amount of home purchase possible has to be financed.