U.S. Mortgage Rates Dip to 6.65% as Homebuyer Demand Reaches Two-Month High

A slight decline in 30-year fixed mortgage rates and increased FHA applications are driving renewed interest in home purchases, while refinance activity remains sluggish.

The average 30-year fixed mortgage rate fell to 6.65%, reversing a two-week rise, according to Freddie Mac's latest data.
Mortgage demand from homebuyers has reached its highest level in nearly two months, bolstered by a 6% increase in FHA loan applications.
Bank of America reported an 80% increase in mortgage applications in Q1 2025, driven by rising home inventory and lower long-term bond yields.
Refinance activity remains weak, with applications dropping 5% last week, reflecting limited opportunities due to elevated rates compared to historical lows.
The Federal Reserve's decision to hold rates steady and stable 10-year Treasury yields continue to support overall market stability.