Freddie Mac Mortgage Charges—Might 1, 2025
What occurred to mortgage charges this week
The Freddie Mac charge on a 30-year mortgage ticked decrease this week, easing 5 foundation factors, to six.76%. This marks the second consecutive week of modest declines, however charges nonetheless stay stubbornly elevated. Charges at the start of Might are notably increased than in early April, after they hovered round 6.64%, however are down about 13 foundation factors over the previous 12 weeks and over 45 foundation factors from a 12 months in the past—the most important year-over-year drop since November 2024.
What it means for the housing market
Nonetheless, charges keep elevated, and the broader financial backdrop stays unsure. This week, 10-year Treasury yields fell to pre-tariff-announcement ranges, reflecting a slight easing in monetary market volatility. Housing market exercise, nevertheless, seems blended: New listings in April 2025 had been up in contrast with a 12 months in the past, however momentum has cooled since final month, suggesting that latest charge will increase is likely to be deterring some would-be sellers. On the similar time, properties are sitting available on the market longer and lively stock is rising—indicators of a market that’s adjusting to slower demand. Whereas house sale costs stay regular, with the Case-Shiller index up practically 4% 12 months over 12 months as of February, extra sellers have signaled a willingness to resort to cost cuts, hinting {that a} softer market is likely to be on the horizon.
