This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Interest rates decreased for February 28th to March 6th, 2025.
Mortgage rates declined last week to their lowest level of 2025, according to a Mortgage Bankers Association survey released Wednesday morning, providing some relief for prospective home buyers beleaguered by years of high rates, though the impetus for cheaper mortgages is not exactly welcome news for consumers. The decline came amid “souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs,” according to Joel Kan, the MBA’s vice president and deputy chief economist.
While mortgage rates have come down after hitting the 7-percent mark again in January for the first time since May 2024, it is a far cry from earlier expectations that rates might drop into the 5-percent range this year.
Freddie Mac report from Realtor.com Senior Economist Joel Berner read in a statement shared with Newsweek: "We do not anticipate significant relief from high mortgage rates in the near-future because of inflation remaining stubbornly high, which will not be helped by the tariffs that the Trump administration appears committed to rolling out.
As part of reconciliation, Republicans must find $880 billion in Medicaid savings through 2035. Talk about tough. Currently Medicaid covers 72 million people. Fraud is estimated to be maximally $31 billion/year. Work requirements might save $100 billion over a decade. Reducing the 9:1 match ratio would save $561 billion through 2035, but states would have to cover the lost federal money, and 75% of Americans like Medicaid including most Republicans. -
Elliot F. Eisenberg, Ph.D., Economist
Interest rate and annual percentage rate (APR) are based on current market conditions as of 03/06/2025, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 03/06/2025 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.