Mortgage rates in the U.S. didn’t move much this week.
Freddie Mac, the Federal Home Loan Mortgage Corporation, reported only a slight uptick in the U.S. average 30-year fixed-mortgage rate, to 6.65% as of Thursday, from 6.63% a week earlier. The number is down from a year ago, when the rate averaged 6.74%.
“Despite volatility in the markets, the 30-year fixed-rate mortgage remained essentially flat from last week,” Sam Khater, Freddie Mac’s chief economist, said in a news release about the weekly change.
Khater said recent rates have spurred an increase in purchase applications, up 5% compared to a year ago.
“Mortgage rates continue to be relatively low versus the last few months, and homebuyers have responded,” he said. “The combination of modestly lower mortgage rates and improving inventory is a positive sign for homebuyers in this critical spring home buying season.”
What should would-be home buyers in Utah do?
In Utah, home prices are down from last year thanks to houses staying on the market longer, said Zions Bank Mortgage Manager Jeremy Holmgren, making it a good time for would-be homeowners to take the plunge.
“I wouldn’t wait to buy,” Holmgren said. “If you’re in a position to buy, buy.”
Right now, mortgage rates are relatively flat, he said, adding he believes its unlikely the Federal Reserve will make any rates changes at next week’s meeting although the Trump administration’s on-again, off-again tariffs are “causing some volatility.”
“Hopefully that will calm down and the markets will stabilize,” Holmgren said. “I would not expect to see any significant fluctuations in mortgage rates.”
That means would-be home owners waiting for mortgage rates to fall before committing to a purchase could end up with sticker shock.
“If rates improve significantly then the market becomes more competitive and we will see home prices increase. Home prices are down year over year so it’s a good time to buy,” Holmgren said. “Date the interest rate and marry the home, you can always refinance.”
Home prices in several Utah counties are lower than they were in March 2024, he said, including in Salt Lake County, where the current typical listing price is about $575,000 compared to about $615,000 a year ago.
At the same time, Holmgren said houses are sitting on the market longer, 59 days in Salt Lake County, an 8% increase over last year.
“I think sellers are pricing homes a little bit too high. They need to start coming down a little bit,” he said, to counter buyers being more patient. That goes against the idea that lower prices should drive more sales.
“There just hasn’t been as much high demand as we would expect to see,” Holmgren said.
More house hunters but fewer home buyers
Seattle-based Redfin reported Thursday house-hunting is up but pending home sales nationwide were down 6.1% year over year during the four weeks ending March 9, similar to declines seen in recent months.
“Mortgage rates are coming down because the country’s economic outlook is getting stormier as investors worry about things like tariffs and a slightly weaker than expected job market,” Redfin Economic Research Lead Chen Zhao said in a news release.
Zhao said the lower mortgage rates are bringing some house hunters off the sidelines.
“But they haven’t yet led to more sales because prospective buyers are still figuring out whether lower payments are enough to justify a home purchase in today’s uncertain economy,” she said. “Many Americans are concerned about things like job security and a potential recession.”