The average rate on a 30-year fixed mortgage in the U.S. has slightly decreased to 6.81% from 6.83% last week, according to Freddie Mac. Despite this marginal decline, the rate remains close to its highest level in over two months. This uptick is attributed to increased volatility in the 10-year Treasury yield, influenced by ongoing economic uncertainties and trade tensions.
The elevated mortgage rates have significantly impacted the housing market. In March 2025, existing-home sales fell 5.9% from February, marking the steepest monthly decline since November 2022 and the slowest March pace since 2009. The National Association of Realtors attributes this downturn to high borrowing costs and economic uncertainty, which have deterred potential buyers.
Economists forecast that mortgage rates will remain above 6% for the remainder of 2025, with some projections suggesting a slight decrease toward 6.5% by year-end. However, these rates are expected to stay elevated due to persistent inflation concerns and the Federal Reserve’s cautious approach to interest rate cuts.
For potential homebuyers, the current market presents challenges. High mortgage rates, coupled with rising home prices, have made homeownership less affordable. Experts advise prospective buyers to carefully evaluate their financial situations and consider locking in current rates if they are financially prepared to proceed.
