Freddie Mac Mortgage Rates—March 20, 2025
What happened to mortgage rates this week
The Freddie Mac rate for a 30-year fixed mortgage did not change much this week, rising from 6.65% to 6.67%. Rates have been stable below the 7% mark for the past several weeks, at a slight improvement from where they were last year at this time. The 10-year Treasury yield has held steady around 4.3% for most of March, not giving much space for mortgage rates to fall. On Wednesday, the Federal Reserve announced that it would be leaving the Federal Funds rate unchanged at the 4.25%-4.5% range, which further locks in mortgage rates to where they currently are. The Fed updated its summary of economic projections, but without any major changes. We still anticipate slight easing by the central bank later this year, which may help mortgage rates to come down.
What it means for the housing market
The first quarter of 2025 has ushered in a bit of relief from mortgage rates, but not much. The recent range is slightly lower than last year, but remains significantly higher than during the post-pandemic buying craze of 2021 and 2022, when rates were roughly half what they are now and prices skyrocketed. Many prospective homebuyers have been biding their time, saving up money as rents have declined for 19 consecutive months, waiting for rates to fall. Though that has not occurred in a significant way, other market conditions like growing inventory, falling median listing price, and increased price reductions are setting the stage for more home purchase activity during this spring busy season.