What happened to mortgage rates this week
The Freddie Mac rate on a 30-year mortgage ticked lower this week, easing 5 basis points, to 6.76%. This marks the second consecutive week of modest declines, but rates still remain stubbornly elevated. Rates at the beginning of May are notably higher than in early April, when they hovered around 6.64%, but are down about 13 basis points over the past 12 weeks and over 45 basis points from a year ago—the largest year-over-year drop since November 2024.
What it means for the housing market
Still, rates stay elevated, and the broader economic backdrop remains uncertain. This week, 10-year Treasury yields fell to pre-tariff-announcement levels, reflecting a slight easing in financial market volatility. Housing market activity, however, appears mixed: New listings in April 2025 were up compared with a year ago, but momentum has cooled since last month, suggesting that recent rate increases might be deterring some would-be sellers. At the same time, homes are sitting on the market longer and active inventory is rising—signs of a market that’s adjusting to slower demand. While home sale prices remain steady, with the Case-Shiller index up nearly 4% year over year as of February, more sellers have signaled a willingness to resort to price cuts, hinting that a softer market might be on the horizon.