Mortgage rates fell for the second week as banking concerns continue to put downward pressure on bond yields, according to the weekly survey from Freddie Mac.
- 30-YR FRM: Averaged 6.42% for the week ending March 23rd, down 18 basis points from last week and now down 31 bips in two weeks. Rates are exactly 200 basis points higher than one year ago.
- 15-YR FRM: Averaged 5.68% for the week ending March 23rd, down 23 basis points from last week. Rates are 205 basis points higher than one year ago.
It’s Been Awhile. With the 30-year fixed exactly 200 bips higher than last year, we could possibly see the spread between this year’s and last year’s rate fall under 200 bips next week. This would be the first time the spread was under 200 since April 21st, 2022.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, noted that financial markets continue to be concerned about banking stability which results in more positive for homebuyers with “improved purchase demand and stabilizing home prices. If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season.”