Share
Mortgage rates fell slightly this week, continuing a streak of decreases after a recent surge above 7% at the beginning of the year. The 30-year fixed-rate mortgage averaged 6.87% this week, Freddie Mac reports.
“Mortgage interest rates have decreased for four consecutive weeks,” says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “This timing is encouraging as home buyers begin to enter the early spring housing market, and mortgage applications have also risen. If housing inventory continues to grow, home buyers will find themselves in a more favorable position compared to previous years.”
Indeed, the 30-year fixed-rate mortgage reached its lowest level of 2025 so far, says Sam Khater, Freddie Mac’s chief economist. “Recent mortgage rate stability is benefiting potential buyers, as purchase demand is stronger than this time last year. This is an indication that a thaw in buyer activity could be on the horizon.”
At a 6.87% average for the 30-year fixed-rate mortgage, home buyers with a 20% down payment would have a monthly payment of about $2,101 for a home priced at $400,000, Lautz says. With a 10% down payment, home buyers’ typical payment would be $2,364, she adds.
“Although rates are lower on a weekly basis, the overall housing affordability equation considers the price of the home alongside expenses such as utilities, tax and insurance,” Lautz says. NAR recently reported that existing-home prices surged to a record high in 2024—topping $407,500—forcing prospective buyers to rethink what they can afford.
Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 13:
- 30-year fixed-rate mortgages: averaged 6.87%, dropping from last week’s 6.89% average. Last year at this time, 30-year rates averaged 6.77%.
- 15-year fixed-rate mortgages: averaged 6.09%, up from last week’s 6.05% average. A year ago, 15-year rates averaged 6.12%.
Will Mortgage Rates Fall Further?
Inflation remains high, which is an obstacle for mortgage rates. Newly released economic data this week showed the Consumer Price Index, which measures inflation, rose to 3% in January. The Federal Reserve has maintained that it will not cut its short-term benchmark interest rate until inflation falls to 2% or the economy begins to face net job losses.
So, what could this mean for mortgage rates? While the Fed’s interest rate does not directly tie into mortgage rates, it can influence them. So far, however, the 10-year Treasury yield, which mortgage rates are more closely aligned to, has not followed suit when the Fed has cut its rate. “Instead, mortgage rates have been trending mostly higher over the past five months,” says NAR Chief Economist Lawrence Yun. “Progress on mortgage rates is only expected to occur when inflation is contained.”
Yun notes that the inflationary measure for housing showed slight improvement in January, rising at its slowest pace in three years. “Perhaps some temporary oversupply in new apartment units will help restrain this component in the coming months and ultimately lead to lower inflation—and, importantly, lower mortgage rates,” he notes.
NAR has forecasted that mortgage rates likely will average between 6% to 6.5% for 2025, although their trajectory will depend on inflation, the federal deficit and other economic pressures.
