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By Suzanne Blake
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Mortgage rates surged for the second straight week, reaching 6.67 percent, according to Freddie Mac.
That was the average for 30-year loans, up from 6.65 percent last week, but there are still lenders offering lower rates.
Why It Matters
The Federal Reserve kept interest rates unchanged on Wednesday, indicating mortgage rates would likely stay stable in the spring.
Read More on U.S.
Many potential homebuyers have been priced out of the housing market due to high interest rates, low inventory and rising home prices as a result of inflation.
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What To Know
While some analysts initially believed mortgage rates could get down to 5 percent in 2025, most have updated their expectations to have rates hover between 6 and 7 percent until the end of 2026.
Data from Bankrate shows that your exact loan type can dramatically change what interest rate you will be required to pay on your mortgage.
While a 20-year fixed-rate mortgage would offer an interest rate of 6.42 percent, homebuyers could get a 5.82 percent rate on a 10-year fixed mortgage.
However, for 30-year fixed mortgages, Optimum First Mortgage is offering one of the lowest rates, at 5.87 percent, with an up-front cost of just over $19,000.
Tomo Mortgage is also offering a 5.99 percent rate, with just $14,233 in up-front costs.
Homebuyers could also save with Sage Home Loans Corporation, which offers a 6.12 mortgage rate and around $19,000 in up-front costs.
Nationally, mortgage rates have experienced some improvement from a few months ago, despite the slight uptick. In early 2025, mortgage rates on 30-year loans were above 7 percent.
For a $400,000 loan, the rate difference could save homeowners $300 each month.
What People Are Saying
Michael Ryan, finance expert and founder of MichaelRyanMoney.com, told Newsweek: "I'm not expecting any dramatic shifts for the remainder of the year, honestly. We're likely looking at a market that's finding its equilibrium. Not the wild appreciation of recent years, but not a crash either."
Realtor.com Chief Economist Danielle Hale told Newsweek: "While in 2024 mortgage rates rose heading into the busy season, likely thwarting plans for many homebuyers, this year's early-year mortgage rate spike has likely reset expectations. I expect we'll see home sales in the late spring and early summer outperform their 2024 pace, which will set the tone for a modestly higher home sales total in 2025 compared to 2024."
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Many potential buyers feel priced out at these current rates, and with other cost-of-living expenses remaining high, may have shelved their dreams of home ownership for the time being. Lenders and sellers are starting to finally feel the heat, and you can see it in both prices and interest rates."
Kevin Thompson, finance expert and founder of 9i Capital, told Newsweek: "The housing market is likely to remain weak as consumers grapple with inflation and higher rates. Home prices are still higher than many expected, making affordability a challenge—especially for first-time buyers. Tariffs will also impact housing supply, as rising costs cause builders to pull back. Meanwhile, many potential buyers may hesitate to purchase homes while rates remain elevated. Overall, the market appears to be entering a period of stagnation following its massive run-up."
What Happens Next
Mortgage rates will still vary dramatically based on your location and that specific housing market, Ryan said.
"The most interesting thing to watch will be regional differences," Ryan said. "Some overheated markets like parts here in Florida, Texas, and the Mountain West—might see small corrections, while other areas remain stable or even appreciate slightly."
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