Mortgage rates were nearly unchanged this week, remaining near 6.7% for the third consecutive week.
The average 30-year mortgage rate was 6.65% through Wednesday, according to Freddie Mac data, compared with 6.67% a week earlier. The average 15-year mortgage rate rose slightly, to 5.89% from 5.83%.
"Recent mortgage rate stability continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications," Sam Khater, Freddie Mac’s chief economist, said in a statement.
What happens next for mortgage rates remains to be seen. Treasury yields, which closely track mortgage rates, have risen slightly in recent days and were up another two basis points on Thursday as traders examined new economic data showing faster-than-expected gross domestic product growth in the fourth quarter against President Trump’s new 25% tariff on auto imports.
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Relatively high mortgage rates have kept home buying and selling activity fairly muted. Mortgage applications to purchase a home rose 1% through Friday, compared to a week earlier, according to the Mortgage Bankers Association.
And housing contract activity remained relatively slow in February, according to the National Association of Realtors, though it improved from a month earlier.
The Pending Home Sales Index, which measures homes going under contract, dropped 3.6% last month compared to a year earlier. From January, contract activity rose 2% to an index reading of 72. A level of 100 is equal to 2001’s contract activity.
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The NAR forecasts that mortgage rates will average 6.4% this year as the economy cools.
“Considering the Federal Reserve’s recent forecast for slower economic growth, we expect mortgage rates to slide moderately lower,” NAR chief economist Lawrence Yun said in a statement. “But the current high national debt will prevent mortgage rates from falling drastically — and certainly not to the 4%-to-5% range seen during President Trump’s first term.”
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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