The average US 30-year mortgage rate declined for a sixth straight week to the lowest level since early December, sparking a pickup in purchase and refinancing activity.
The contract rate on a 30-year mortgage slipped 6 basis points to 6.67% in the first week of March, according to Mortgage Bankers Association data released Wednesday. The rate on a 15-year fixed mortgage decreased to 6.04%, the lowest since October, while the average on a 30-year jumbo was the cheapest in more than five months.
The decline in borrowing costs ahead of the busy spring selling season is a much-needed boost for a housing market that’s been struggling for traction. Lower rates help to ease the financial burden for prospective buyers at a time when home prices remain elevated.
Mortgage rates track Treasury yields, which have stabilized recently after declining substantially in February. Investors are flocking to the safety of government securities as President Donald Trump’s tariff policy and concerns about the economy spur a stock-market selloff.
MBA’s index applications for home purchases increased 7% to the highest level since January after a 9% advance a week earlier. The refinancing gauge jumped more than 16% to the highest since early October.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
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