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Mortgage rates have gone down during the first week of March 2025. According to numerous reports, both numbers of prospective home buyers and current homeowners spiked back up in the housing market thanks to the latest interest rates. So, how much did they go down this week? Below, find out everything we know.
How Much Did Interest Rates Drop?
According to CNBC, the average contract interest rate for 30-year fixed-rate mortgages — with conforming loan balances — of $806,500 or less, dropped to 6.73 percent from 6.88 percent, Points went down to 0.60 from 0.61 for loans with a 20 percent down payment, which is the lowest level it’s been since December 2024, the outlet reported.
Per Mortgage Bankers Association economist Joel Kan, “Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.”
Kan further noted in an MBA release, “This is a period where we typically see purchase activity ramp up, and purchase applications were up over the week and continued to run ahead of last year’s pace, more green shoots as we head into the spring home-buying season.”
“Additionally, the FHA rate dipped to 6.42 percent,” Kan pointed out. “Refinance activity was at its fastest pace since October 2024, as conventional refinance applications rose 34 percent and government refinance applications increased by 42 percent over the week. The move in government refinances was driven by a 75 percent increase in VA loans, which have been prone to large changes in recent months.”
Current Housing Mortgage Interest Rates
Per CNBC, applications to refinance a home loan spiked 37 percent this week, and they were 83 percent higher than one year ago in the same week. Applications for a mortgage to purchase a house increased 9 percent for the week. However, they were still 2 percent higher than the same week in 2024.
How Were Interest Rates Before?
As CNBC reported, current interest rates are at a lower level than they were in late 2024. In July 2025, mortgage rates reached 7 percent, according to NPR.
