Mortgage Market Update for March 14th, 2025


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.

 

 

Request a Consultation with a Loan Specialist

Peoples Bank & Trust Company

  • Toll Free: (800) 697-4371
  • MPO NMLS#: 457569
  • PB&T NMLS#: 257781

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