The average 30-year mortgage rate in the U.S. has now fallen for the sixth straight week, reaching its lowest level since December. While this decline offers a slight boost in purchasing power for buyers, it hasn’t been enough to significantly improve affordability. As a result, the housing market continues to struggle with low sales activity.
According to Freddie Mac, the average rate for a 30-year mortgage dropped to 6.76% from 6.85% last week. A year ago, it was 6.94%. Meanwhile, 15-year fixed-rate mortgages—a popular choice for refinancing—also saw a decrease, falling to 5.94% from 6.04% last week.
Despite these lower rates, many prospective buyers, especially first-time homebuyers without built-up equity, still find affordability to be a major challenge. Home prices remain high, and even with more homes coming onto the market, sales activity has slowed. In January, sales of previously owned homes declined, reflecting continued struggles despite slightly better borrowing conditions.
New data on pending home sales—often an indicator of future closings—suggests that the slowdown may continue in the coming months. In fact, pending sales hit an all-time low in January.
Why This Matters for Sellers
While declining mortgage rates are an encouraging sign, they haven’t yet driven a surge in homebuying activity. At the same time, inventory levels have climbed to their highest point since June 2020. With more competition in the market, sellers who wait too long may face more difficulty attracting buyers and securing top dollar.
The bond market, which influences mortgage rates, has been fluctuating in response to economic factors, including concerns over tariffs and other policies. The 10-year Treasury yield, which serves as a benchmark for mortgage pricing, has also been easing in recent weeks.
As the spring homebuying season picks up, sellers should act now to take advantage of current conditions before competition increases further. If you’re considering selling your home, now is the time to explore your options.
📩 Thinking about selling? Let’s talk about your home’s value and market conditions.
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