U.S. 30-Year Mortgage Rates Drop to Lowest Level in Eight Weeks

February 21, 2025 - 02:04

The average rate on a 30-year mortgage in the United States has decreased for the fifth consecutive week, reaching its lowest point since late December. This decline comes as a positive development for potential homebuyers, coinciding with the peak season for home sales. According to recent data, the average rate slipped to 6.85%, down from 6.87% the previous week.

In addition to the 30-year mortgage rates, borrowing costs for 15-year fixed-rate mortgages, which are often favored by homeowners looking to refinance, also saw a reduction this week. This trend may signify a shift in the housing market, potentially encouraging more buyers to enter the market as affordability improves.

As the spring home-buying season unfolds, the decrease in mortgage rates could stimulate activity, making it an opportune time for buyers to explore their options in a competitive market. The ongoing adjustments in borrowing costs reflect broader economic trends and the evolving landscape of mortgage financing.