Today's Mortgage Rates - 02/09/2025
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Mortgage Rates Ease Into February
The quiet downturn in mortgage rates continued this week.
As reported by Freddie Mac today, the average offered interest rate for a conforming 30-year fixed-rate mortgage (FRM) declined by six basis points (0.06%) this week, easing to 6.89%. Over the last three weeks, the cumulative decline seen here is now a little more than an eighth of a percentage point.
Average offered rates for 15-year fixed-rate mortgages managed a slightly larger decrease, falling by seven basis points (0.07%) to 6.05%. The 22 basis point decline over the last few weeks has left the most popular short-term mortgage at its lowest point since the end of December.
A 5/1 ARM might offer a homebuyer a lower-cost alternative to a long-term fixed-rate mortgage, and the difference in rate between 30-year FRMs and 5/1 ARMs improved quite a bit this week. The Mortgage Bankers Association said that the initial fixed interest rate on a hybrid 5/1 ARM declined by thirty-seven basis points (0.37%), falling to 6.07%. Even with the slight downward move by its long-term fixed-rate cousin, this widened the gap in rate back to eighty-two basis points (0.82%). This better-than-three-quarter percentage-point gulf should be considerable enough to entice some winter homebuyers to select an ARM as their choice of financing, as there may be some savings to be had by doing so.
One of the factors that has helped lift long-term rates and keep them elevated for several months is investor concern regarding wide the government budget deficit and how much new debt will need to be issued to finance it. Large supplies of bonds often require higher yields to entice investors to absorb them. That said, the Treasury recently announced that they didn't expect to be increasing the size of planned debt offerings or their mix for at least the next few quarters, and this seemed to allay fears of excessive supply, at least for now. In turn, this helped bond yields to retreat somewhat, and mortgage rates have followed along.
That said, those yields aren't going very far and are in no specific hurry to get there. With this in mind, it looks as though we'll see fairly stable mortgage rates in the market over the next few days.
Each week in HSH's MarketTrends newsletter, we track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers. Read the most recent edition of MarketTrends or subscribe for email delivery.
Current mortgage rates
Week | 30-year-Fixed | 15-year-Fixed |
---|---|---|
02/06 | 6.890% | 6.050% |
01/30 | 6.950% | 6.120% |
01/23 | 6.960% | 6.160% |
01/16 | 7.040% | 6.270% |
01/09 | 6.930% | 6.140% |
01/02 | 6.910% | 6.130% |
12/26 | 6.850% | 6.000% |
12/19 | 6.720% | 5.920% |
12/12 | 6.600% | 5.840% |
12/05 | 6.690% | 5.960% |
11/27 | 6.810% | 6.100% |
11/21 | 6.840% | 6.020% |
Mortgage Choices at a Glance
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Latest Mortgage Rate Analysis
HSH's longer-range outlook for mortgage rates, where we review our last forecast,discuss current market influences and provide our expectations for mortgage rates over the next nine weeks.