Mortgage rates fell for the fifth straight week, but remained close to 7% – Redfin (NASDAQ: RDFN)

Homebuyers received some good news this week: Mortgage rates fell to their lowest levels in their fifth week since last year, while median home prices in the U.S. rose by the smallest gain since September.

What to know: According to Freddie Mac, the average interest rate for 30-year loans is 6.85%, down from 6.87% last week, reaching its lowest level since December 2024.

However, borrowing costs are still close to a 25-year high and continue to weigh on home sales. Reports from real estate brokerage firms Redfin Corp. RDFN It shows that the average home for sale takes 57 days, the longest in five years.

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Redfin also noted that homes in the market are supplying for five months as home sales decline and supply increases. Increased inventory has driven US local prices to rise by 3.7% year-on-year.

Sam Khater, Freddie Mac’s chief economist told Bloomberg that rates hovering over tight ranges could help assure potential buyers that they may remain relatively high for a while High state.

“This stability is still good for potential buyers and sellers as we approach the spring home buying season,” Khater said.

In the near term, interest rates are unlikely to drop much, as the Fed is currently reducing its reduced fees.

Fed officials stressed the increased uncertainty surrounding proposed tariffs and immigration policies, as well as strong household spending and geopolitical risks, which are the reasons why interest rates are stable and awaiting further evidence of inflation.

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