Mortgage Market Update

Mortgage Market Update: What’s Happening the Week of March 24, 2025?

The mortgage market has seen notable activity this week, with interest rates fluctuating due to economic trends, Federal Reserve policies, and housing market conditions. If you’re considering buying a home, refinancing your mortgage, or applying for a home loan, staying updated on the latest mortgage rates is crucial.

Current Mortgage Interest Rates – March 28, 2025

• Conventional Loan Rates: The national average 30-year fixed mortgage rate is 6.76%, reflecting a slight dip compared to earlier in the month.

• FHA Loan Rates: The 30-year FHA mortgage rate is currently 6.55%, making it a viable option for first-time homebuyers.

• VA Loan Rates: Veterans and active-duty service members can access a VA home loan at approximately 5.75%, offering one of the most affordable mortgage financing options.

Market Trends and What’s Driving Mortgage Rates

1. Federal Reserve Policy & Interest Rate Decisions: The Fed’s stance on inflation and economic growth continues to impact mortgage loan rates. With mixed economic data, mortgage rates have experienced slight fluctuations.

2. Housing Market Trends: Home prices remain steady, while inventory challenges persist in certain markets. This affects home affordability and buyer demand.

3. Economic Uncertainty & Treasury Yields: Mortgage rates often follow the movement of the 10-year Treasury yield. A rise or fall in bond yields directly impacts mortgage pricing.

Should You Buy a Home or Refinance Now?

• For Homebuyers: With mortgage rates remaining relatively high, it's important to compare loan options, including fixed-rate mortgages vs. adjustable-rate mortgages (ARM).

• For Homeowners: If you’re considering a mortgage refinance, keep an eye on rate changes. Locking in a lower rate now could save you money on monthly payments.

• For First-Time Buyers: FHA and VA loans continue to provide accessible paths to homeownership with low down payment mortgage options.

Final Thoughts: What’s Next for the Mortgage Market?

The housing market and mortgage rates will remain sensitive to economic data, inflation reports, and Federal Reserve policy changes. If you’re looking for the best mortgage rates in 2025, staying informed is key. Consult with LendingQuarters to discuss strategy.