Mortgage rates decreased in the first week of March 2025: everything you need to know
5 march 2025 в 21:13
Mortgage rates decreased in the first week of March 2025. According to numerous reports, both the number of potential homebuyers and current property owners have increased in the housing market again thanks to the latest interest rates. So how much did they drop this week? Read on to find out everything we know.
According to CNBC, the average contract interest rate for 30-year fixed-rate mortgages — with loan amounts not exceeding $ 806,500 — decreased from 6.88 percent to 6.73 percent. Points decreased from 0.61 to 0.60 for loans with a 20 percent down payment, which is the lowest level since December 2024, the publication reports.
According to Mortgage Bankers Association economist Joel Kan, «Mortgage rates fell last week due to deteriorating consumer sentiment about the economy and increased uncertainty about the impact of new tariffs on imported goods in the US. These factors led to the largest weekly decline in 30-year fixed-rate loans since November 2024».
Kan also noted in the MBA release: «This is a period when purchase activity typically increases, and purchase applications increased last week and continue to outpace last year’s pace, more green shoots as we approach the spring homebuying season».
«Additionally, the FHA rate dropped to 6.42 percent», - Kan pointed out. «Refinancing activity was the fastest since October 2024, as refinancing applications for conventional loans increased by 34 percent, and refinancing applications for government loans increased by 42 percent in a week. The increase in government refinancing applications was driven by a 75 percent increase in VA loan applications, which have been subject to significant changes in recent months».
According to CNBC, mortgage refinancing applications increased by 37 percent this week and were 83 percent higher than a year ago in the same week. Mortgage applications for home purchases increased by 9 percent in a week. However, they were still 2 percent higher than in the same week of 2024.
As CNBC reports, current interest rates are lower than at the end of 2024. In July 2025, mortgage rates reached 7 percent, according to NPR
According to CNBC, the average contract interest rate for 30-year fixed-rate mortgages — with loan amounts not exceeding $ 806,500 — decreased from 6.88 percent to 6.73 percent. Points decreased from 0.61 to 0.60 for loans with a 20 percent down payment, which is the lowest level since December 2024, the publication reports.
According to Mortgage Bankers Association economist Joel Kan, «Mortgage rates fell last week due to deteriorating consumer sentiment about the economy and increased uncertainty about the impact of new tariffs on imported goods in the US. These factors led to the largest weekly decline in 30-year fixed-rate loans since November 2024».
Kan also noted in the MBA release: «This is a period when purchase activity typically increases, and purchase applications increased last week and continue to outpace last year’s pace, more green shoots as we approach the spring homebuying season».
«Additionally, the FHA rate dropped to 6.42 percent», - Kan pointed out. «Refinancing activity was the fastest since October 2024, as refinancing applications for conventional loans increased by 34 percent, and refinancing applications for government loans increased by 42 percent in a week. The increase in government refinancing applications was driven by a 75 percent increase in VA loan applications, which have been subject to significant changes in recent months».
According to CNBC, mortgage refinancing applications increased by 37 percent this week and were 83 percent higher than a year ago in the same week. Mortgage applications for home purchases increased by 9 percent in a week. However, they were still 2 percent higher than in the same week of 2024.
As CNBC reports, current interest rates are lower than at the end of 2024. In July 2025, mortgage rates reached 7 percent, according to NPR
© Zhinobaeva Margarita
