03/10/2025
Mortgage Rates Are Dropping—What That Means for Buyers
Mortgage rates are on a steady decline, and buyers are taking notice. The average 30-year fixed-rate mortgage has dropped for seven straight weeks, and this week saw the biggest dip since mid-September.
As a result, mortgage applications for home purchases jumped 9% this week, according to the Mortgage Bankers Association. That’s a strong sign that more buyers are stepping off the sidelines and into the market.
“This is the time of year when homebuying activity usually picks up, and purchase applications are already outpacing last year’s numbers,” says MBA Deputy Chief Economist Joel Kan.
Right now, the 30-year fixed-rate mortgage sits at 6.63%, down from 6.76% last week. Buyers are also finding more inventory, which—combined with lower rates—creates a solid opportunity before the spring market heats up.
Lower rates don’t just benefit buyers—homeowners are jumping on refinancing opportunities, too. MBA reports that refinance applications surged 37% this week, up a staggering 83% compared to this time last year.
To put these numbers in perspective:
• A $400,000 home with a 20% down payment at today’s 6.63% rate would mean a monthly mortgage payment of about $2,050.
• With just 10% down, that payment jumps to around $2,306.
Here’s where mortgage rates stand as of March 6, according to Freddie Mac:
• 30-year fixed: 6.63% (down from 6.76% last week, and 6.88% a year ago).
• 15-year fixed: 5.79% (down from 5.94% last week, and 6.22% a year ago).
Bottom line? Rates are falling, demand is rising, and the market is shifting. If you’ve been waiting for the right time to buy (or refinance), this could be your window of opportunity.
