The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) in the US dipped slightly to 6.71% for the week ending March 21, 2025, down from 6.72% the previous week, according to the Mortgage Bankers Association. This marks a decline from the 6.93% rate recorded a year earlier.
US mortgage rates edge down
"Markets remained focused on potential trade policy changes, while the Fed kept the federal funds rate steady," noted Joel Kan, an economist at the MBA.
Meanwhile, mortgage applications in the US declined for the second consecutive week, falling 2% after a steeper 6.2% drop in the prior period, according to the latest MBA report.
Refinancing applications slip
Refinancing applications slipped 5%, hitting their lowest level in a month, while applications for new home purchases edged up 1%. Kan pointed out that last week’s increase in purchase activity was largely driven by a 6% jump in FHA loan applications, as improving housing inventory and gradually easing mortgage rates provided more opportunities for buyers in this segment.
