Average US 30-year mortgage rate increases slightly for the second week in a row

From Yahoo Finance: 2025-03-20 12:00:00

The average rate on a 30-year mortgage in the U.S. rose slightly to 6.67%, up from 6.65% last week, according to Freddie Mac. This is the second consecutive week of a modest increase, impacting prospective home shoppers in the spring homebuying season.

Borrowing costs for 15-year fixed-rate mortgages also rose, reaching 5.83% from 5.8% last week. A year ago, the rate averaged 6.21%. Factors influencing mortgage rates include inflation expectations, global demand for U.S. Treasurys, and the Federal Reserve’s interest rate policies.

The 30-year fixed-rate mortgage has stayed below 7% for nine weeks, providing relief for buyers and sellers. Mortgage rates have been following the 10-year Treasury yield’s movements, which has fallen recently due to concerns about the economy’s growth and tariffs imposed by the Trump administration.

Tariffs can drive inflation higher, leading to increased yields on the 10-year Treasury note and subsequently pushing up mortgage rates. The Federal Reserve kept its benchmark interest rate unchanged, signaling potential rate cuts later this year despite elevated inflation levels.

The U.S. housing market has been in a sales slump since 2022 due to increasing mortgage rates. Sales of previously owned homes rose 4.2% last month from January but were down 1.2% from February last year, marking the lowest level in nearly 30 years. The market is expected to remain stable with rates between 6.5% and 7%.

Read more: Average US rate on a 30-year mortgage rises slightly for the second week in a row