Mortgage rates dropped slightly last week as mortgage applications rose.  This is a good sign that more Buyers are entering the marketplace this Spring.  Although the numbers are down from the same time last year, this is good to see as the weather in our area is improving.

Freddie Mac's Primary Mortgage Market Survey for the week of March 16, 2023, reveals that the 30-year fixed-rate mortgage (FRM) averaged 6.60 percent, a decline from last week's 6.73 percent, but an increase from 4.16 percent at the same time last year.

The 15-year FRM averaged 5.90 percent, down from last week's 5.95 percent, but up from 3.39 percent at this time last year. Freddie Mac's Chief Economist, Sam Khater, advises homebuyers to shop for additional rate quotes during times of high mortgage rate volatility, as research suggests it can potentially save them between $600 and $1,200 annually.

The Mortgage Bankers Association (MBA) reports that mortgage applications increased 6.5 percent from the previous week, with the Refinance Index increasing by 5 percent from the previous week but remaining 74 percent lower than the same week one year ago. The unadjusted Purchase Index decreased by 8 percent compared to the previous week and was 38 percent lower than the same week one year ago. Joel Kan, MBA's Vice President and Deputy Chief Economist, attributes the decrease in mortgage rates to the decline in Treasury yields, but warns that financial market volatility may cause buyers to pause their decisions. Refinance activity remained more than 70 percent behind last year's level due to rates being more than two percentage points higher than they were a year ago.

Additional mortgage activity

The refinance share of mortgage activity decreased to 28.2 percent of total applications from 28.9 percent the previous week.

The adjustable-rate mortgage (ARM) share of activity decreased to 8.5 percent of total applications.

The FHA share of total applications increased to 12.9 percent from 12.8 percent the week prior.

The VA share of total applications decreased to 11.9 percent from 12.0 percent the week prior.

The USDA share of total applications remained unchanged at 0.5 percent from the week prior.

This week in mortgage rates

Rates decline. Here’s how average fixed rates broke down:

30-year fixed-rate loans: 6.60% (down from 6.73%)

15-year fixed-rate loans: 5.90% (down from 5.95%)

Keep an eye on mortgage rates and trends here: 👇

Weekly National Mortgage Interest Rate Trends