Mortgage Rates Ease Slightly: Is It Enough to Grow Spring Sales?
- Marc Winter
- May 9
- 2 min read
Source: NAR

Homebuyers this spring are securing lower mortgage rates than a year ago, with 30-year fixed rates averaging 6.76%, down from rates above 7% previously. Despite this decline, many potential buyers remain hesitant to act. Purchase mortgage applications fell 4% last week, with conventional loan applications dropping 6%, reflecting ongoing economic uncertainty and sensitivity to mortgage rates, according to the Mortgage Bankers Association (MBA).
Although mortgage rates have eased to more favorable levels this spring, buyer activity remains cautious due to economic uncertainty and hopes for further rate declines. However, improved inventory and some rate relief may gradually unlock pent-up demand in the coming weeks.
Buyers May Find More Negotiating Power
While mortgage rates remain high compared to the past five years, homebuyers benefit from increased inventory, boosting their negotiating power. Housing inventory in March rose nearly 20% year-over-year, offering more options than in recent years. Repeat buyers, leveraging substantial home equity, are making all-cash purchases or large down payments, helping offset higher rates. All-cash buyers accounted for 26% of existing-home sales in March, underscoring their continued influence in the market
Mortgage Rate Averages This Week
For home buyers who are focused on locking in a lower mortgage rate, borrowing costs have dropped slightly. “In recent weeks, rates for the 30-year fixed-rate mortgage have fallen even lower than the first quarter average,” says Sam Khater, Freddie Mac’s chief economist.
At this week’s 6.83% mortgage rate average, home buyers with a 20% down payment on a home priced at $400,000 would face a monthly mortgage payment of about $2,078, Lautz says. With a 10% down payment, the monthly mortgage payment would rise to $2,337.
Freddie Mac reports the following national averages with mortgage rates for the week ending May 1:
30-year fixed-rate mortgages: averaged 6.76%, dropping from last week’s 6.81% average. A year ago, rates averaged 7.22%.
15-year fixed-rate mortgages: averaged 5.92%, falling from last week’s 5.94% average. Last year at this time, rates averaged 6.47%.
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