Understanding the Current Mortgage Market and Interest Rates:
Hey everyone! Just a quick introduction, I’m Michael Parker (Branch Manager) from PBHomeLoan.com, and I’m here to break down the mortgage market as of March 14, 2025. Whether you’re eyeing your first home, thinking about a refinance, or just curious about rates, I’ve got the latest for you. This week, we’re seeing shifts in conventional, VA, and FHA mortgage rates—let’s jump in!
Mortgage
Rates This Week: What I’m Seeing
Rates are keeping us on our toes this week (as of March 13,
2025). Here’s the snapshot:
·
30-Year Fixed Conventional: Up to 6.65%
from 6.63% (Freddie Mac).
·
15-Year Fixed Conventional: Now 5.80%, up
from 5.79%.
·
VA 30-Year Fixed: 5.75% for purchases,
5.99% for refinances.
·
FHA 30-Year Fixed: Around 6.00%
We hit a low of 6.63% for conventional on March 6—the best
since December 2024. VA and FHA dipped too (VA below 5.8% earlier this week),
but Friday’s slight uptick shows the market’s still settling.
What’s
Moving the Needle?
Why the changes? Mortgage rates follow the 10-year Treasury
note yield (around 4.2% now). The 245-basis-point spread with conventional
rates reflects investor bets on inflation and growth. VA and FHA rates? They’re
lower—0.25% to 0.5% below conventional—thanks to government backing.
Economic jitters—like a slowing job market and federal
layoffs—have pulled yields (and rates) down lately. But this week’s nudge up
might tie to inflation reports (CPI March 12, PPI March 13). If inflation
sticks, rate drops could stall. The Fed’s March 18-19 meeting is next—after
three cuts in 2024, they’re hinting at just two in 2025. I’ll keep you posted!
Mortgage
Demand: You’re Not Alone
Good news: People are
starting to refinance and purchase homes! Mortgage applications spiked 11.2%
for the week ending March 7 (after a 20.4% leap the week prior).
Refinances: Up 16%, especially VA and FHA, as people
with 6.5%+ rates lock in savings.
Purchases: Rising modestly, just in time for spring.
At PBHomeLoan.com, our phones are starting to ring—veterans
love the ability to finance 100% of their purchase/cash-out refinance (no
maximum LTV for VA IRRRL), and first-timers lean on FHA’s 3.5% down option.
Your
Options: Conventional, VA, and FHA
Here’s the rundown:
Conventional 30-Year Fixed (6.65%): Best for strong
credit and 20% down (no PMI). Down from
the highs of 8.01% from October 2023.
VA 30-Year Fixed (5.75% purchase, 5.99% refinance):
Veterans and active-duty military get access to one of the best loan programs
available. Many are starting to
refinance their higher interest rates through the VA IRRRL program to save
money every month. It also happens to be
one of the easiest loans to qualify for.
We have no minimum credit score requirement
FHA 30-Year Fixed (6.00%): Scores as low as 500, 3.5%
down—great for first-timers, and streamline refinancing available for those
with a higher interest rate.
What This
Means for You
Buying a Home
With conventional at 6.65%, VA at 5.75%, and FHA at 6.15%,
affordability’s tough—median home prices are near $396,900 (January 2025).
Inventory’s tight (folks with sub-6% rates aren’t selling). My tips? Boost your
credit, shop rates with us at PBHomeLoan.com, and check VA or FHA eligibility.
Waiting for a big drop? Might not happen soon.
Refinancing
Got a rate over 7% (conventional) or 6.5% (VA/FHA)? Let’s
talk. Cutting 0.5% could save you big and we’ll run the numbers for you. VA
streamline refinancing is a very easy and quick process.
My Take
Moving Forward
This week’s market is steady but watchful: conventional at
6.65%, VA at 5.75%-5.99%, FHA at 6.00%. The Fed and inflation data next week
will steer us, but I see rates holding mid-6% for conventional (VA/FHA a bit
lower) into spring.
At PBHomeLoan.com, my mission’s clear: get you the best deal
and lowest rate available. Give me a call today to get started.
Finding the best mortgage lender is crucial for a successful home-buying experience. With its local expertise, personalized solutions, and commitment to customer satisfaction, Peoples Bank & Trust Company is a trusted partner in helping you achieve your dream of homeownership. Contact us today to explore your home loan options and embark on your path to owning a home.
Give us a call today @ (800) 697-4371 or complete our pre-qualification form. Take the first step toward homeownership today with a VA home loan pre-approval.
