The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) in the U.S. continued to decline, reaching 6.67% in the week ending March 7, 2025—the lowest level since early October—down from 6.73% the previous week, according to the Mortgage Bankers Association. This compares to a rate of 6.84% a year ago.
US mortgage rates fall for sixth week
Meanwhile, the rate for jumbo loans (30-year mortgages for homes priced above $806,500) fell 15 basis points to 6.68%. The average rate for a 30-year mortgage backed by the Federal Housing Administration also declined, dropping 8 basis points to 6.34%.
Mortgage applications in the U.S. rose 11.2% in early March compared to the previous week, building on the strong 20.4% surge seen in late February, according to the Mortgage Bankers Association.
Applications rise by double digits
The sharp increase coincided with another drop in benchmark mortgage rates, as concerns over U.S. economic growth kept yields on asset-backed securities low. Refinancing applications, which are particularly sensitive to short-term rate changes, jumped 16% following a 37% spike in the prior period. Meanwhile, applications for home purchase loans rose 7%, marking a second consecutive increase.
