Mortgage rates fell for a third straight week, and the timing is landing right in the middle of the spring homebuying season.
The average 30-year fixed rate slipped closer to the low 6% range, according to the latest weekly survey from Freddie Mac.
That's still roughly double what buyers locked in four years ago, but it's the first time in 2025 that rates have dropped three weeks running.
For anyone who has been waiting on the sidelines, even a small move changes the math fast.
On a $400,000 loan, the difference between 7.2% and 6.8% works out to about $100 a month — roughly $1,200 a year.
Over a 30-year term, that's tens of thousands of dollars in interest.
The catch is that rates can reverse just as quickly as they fall.
Bond yields have eased as inflation has cooled from its 2022 peak, and the Federal Reserve has signaled it's in no rush to hike again.
Mortgage rates don't follow the Fed's rate directly — they track the 10-year Treasury — but the direction of travel matters.
When investors expect slower inflation, long-term yields tend to drift lower, and mortgages follow.
Inventory is the other half of the story.
More homes are sitting on the market than at any point since 2019, and sellers are cutting prices in some metros.
Builders are offering rate buydowns and closing-cost credits to move new construction.
For buyers, that combination — softer rates plus more choices — is the best setup in years.
It is not, however, a return to the 3% era.
A homeowner locked in at 3.5% has little incentive to move and take on a 6.5% loan, which is why so many listings have sat.
But as rates ease, the "lock-in effect" loosens, and more owners may finally list.
That could add supply in the back half of the year — and more supply tends to cool prices.
If you're shopping, get quotes from at least three lenders on the same day.
Rates vary by more than half a percentage point between lenders for identical borrowers, and those differences compound over decades.
Ask about points, origination fees, and whether the quoted rate assumes a 20% down payment.
A lower rate with $6,000 in points may cost more than a slightly higher rate with none.
Refinancing deserves a fresh look, but only if the math clears your break-even point.
A common rule of thumb is to refinance only if you can shave at least 0.75 percentage points and plan to stay in the home long enough to recoup the closing costs.
Otherwise, you're paying thousands to save a few dollars a month.
Our take: this is a window, not a turning point.
Rates are unlikely to crash back to pandemic lows, and waiting for 5% could mean missing a market with more inventory and motivated sellers.
Final Thoughts
Get pre-approved, run the numbers on today's rate, and decide from there — not from a headline.