This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary
Interest rates remained flat for the week of March 21st to March 27th, 2025. This week, mortgage rates are mainly driven by the financial market's wariness over President Donald Trump's economic policies. The Federal Reserve's decision-making body voted on March 19 not to reduce or raise its benchmark interest rate in order to evaluate the impact of the administration's trade and austerity measures.
Experts agree we won't see mortgage rates in the 2% to 3% range in our lifetimes. However, rates around the 6% level are entirely feasible if the U.S. succeeds in controlling inflation and lenders feel confident about the economic outlook. In fact, rates dipped slightly at the end of February, falling closer to the 6.5% mark than had been observed for some time.
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 03/27/2025 – 12:00 PM EST
Market Review: Optimal Blue's Production Metrics:
U.S. National Home Price Index NSA Housing months-of-supply:
Property Tax Revenue Breakdown:
Money Moves
Cross-border fund flows are going to meaningfully shift as President Trump tries to reduce or eliminate trade deficits. Because the trade deficit is offset by the capital account, a lower deficit means fewer dollars being poured back into stateside physical assets, equities, and debt. So, more production and jobs at home, but higher capital costs and a lower rate of return on investments. There is never a free lunch
- Elliot F. Eisenberg, Ph.D., Economist
News You Can Use
- Federal housing agency will not cut Fannie Mae and Freddie Mac loan limits, new director says
- New Home Sales Increase to 676,000 Annual Rate in February
- No FHA-Insured Loans For Non-Permanent U.S. Residents
- GSEs Ordered To Terminate Special Purpose Credit Programs
- Mortgage Rates Hold Steady Amid Uncertainty
- New York and the Midwest Dominate Redfin's Hottest Neighborhoods of 2025
Interest rate and annual percentage rate (APR) are based on current market conditions as of 03/27/2025, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to
property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 03/27/2025 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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