Mortgage rates slipped back below 7% this week as the 10-year Treasury yield declined for most of the period, Freddie Mac found. But in recent days the benchmark started moving higher, possibly making the drop short-lived.
The 30-year fixed rate mortgage fell 8 basis points to 6.96% for Jan. 23, from 7.04% the prior week, the Freddie Mac Primary Mortgage Market Survey found. But that is an increase from the 6.69% for the same week last year.
At the same time, the 15-year FRM declined 11 basis points to 6.16% from 6.27% for the week of Jan. 16. A year ago, the rate was 5.96%.
“After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks,” said Sam Khater, Freddie Mac’s chief economist, in a press release. “While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications.”
This decline was much-needed by the housing market, offering some relief to buyers, Samir Dedhia, CEO of One Real Mortgage of Holmdel, New Jersey, said.
“Rates will likely continue to be volatile through the first quarter due to the Trump administration’s potential inflationary policies,” Dedhia said in a statement. “The good news is with the new administration already signaling that home affordability could take center stage, there is potential for mortgage relief ahead.”
After sliding from Jan. 13 peak of 4.81% and closing on Jan. 21 at 4.57%, the benchmark 10-year Treasury yield started trending upward on Wednesday, reaching just under 4.6%. By 11 a.m. Thursday morning, it was at 4.65%.
That increase is being seen in more timely mortgage rate measuring sticks.
At that same time, the Zillow rate tracker for the 30-year FRM was at 6.7%, up 2 basis points on the day but down from the previous week’s average of 6.78%.
Data from the Lender Price product and pricing engine on the National Mortgage News website showed the 30-year FRM up 11 basis points on the day, pushing it to 7.106%. It was at 7.12% one week earlier.
“The lack of specific details regarding tariffs in the new administration’s executive orders on Jan. 20 left mortgage rates largely unchanged following the announcement,” said Kara Ng, senior economist at Zillow Home Loans, in a Wednesday evening statement. “However, as more clarity emerges in the coming months, and as new economic data is published, mortgage rates are expected to experience fluctuations.”
The Mortgage Bankers Association’s Weekly Application Survey, released on Wednesday, found the conforming 30-year FRM was 7 basis points lower from the prior week, but still above 7%.
“Mortgage applications increased for the second straight week but remain subdued overall because rates are higher than they were in the final months of 2024,” Bob Broeksmit, MBA president and CEO, said in a Thursday morning statement. “Economic and monetary policy uncertainty and inflationary concerns will likely keep mortgage rates elevated for the near future.”
