Freddie Mac’s most recent Primary Mortgage Market Survey recorded the 30-year fixed-rate mortgage at 5.98% as of Thursday, down from 6.01% the prior week and marking a return to the 5% range for the first time in about three and a half years. The report provides both a snapshot of current borrowing costs and a year-over-year comparison: one year earlier, the 30-year fixed-rate averaged 6.76%.
Shorter-term borrowing costs moved in a different direction. The 15-year fixed-rate mortgage averaged 5.44% as of Thursday, up from 5.35% a week earlier. That pace remains below the 15-year average from a year ago, which stood at 5.94%.
Addressing the market implications, Freddie Mac’s Chief Economist Sam Khater highlighted the combination of the lower 30-year rate and improving availability of homes for sale. In his assessment, that mix is likely to stimulate buyer interest ahead of the spring homebuying season.
"This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring homebuying season," said Sam Khater, Freddie Mac’s Chief Economist.
The survey data provides three specific comparisons readers can use to gauge recent movement: the week-to-week change for the 30-year mortgage (from 6.01% to 5.98%), the year-over-year comparison for the 30-year mortgage (6.76% a year ago), and the week-to-week and year-over-year figures for the 15-year mortgage (5.35% last week and 5.94% a year ago, respectively). Together these figures indicate modest week-to-week variability and a moderate decline versus the prior year in the 30-year average.
Market participants and prospective buyers can interpret these numbers in several ways, but the survey itself is limited to reporting the prevailing averages and related commentary on inventory. The results do not provide a forecast of future rate moves or a breakdown of regional variances in mortgage pricing. They do, however, offer a current benchmark for borrowers and industry observers preparing for the spring buying season.
Key takeaways are the return of the 30-year mortgage to the 5% range, the slight uptick in the 15-year rate week-to-week, and Freddie Mac’s assessment that improved housing availability could boost buyer activity.