Mortgage rates ticked up this week but economists are also pointing to some positive news for housing this week: Purchase application activity is up nearly 20% over last year and for-sale inventory has reached its highest level in over five years–but affordability challenges continue. 

According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.81%, up five basis points from last week’s average of 6.76%. 

“The 30-year fixed-rate mortgage remained below the 7% threshold for the 17th consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “Stable mortgage rates coupled with moderately rising inventory are attracting homebuyers into the market, with purchase application activity up 18% from last year.” Realtor.com Senior Economic Research Analyst Hannah Jones, stated, “This uptick was largely driven by recent U.S. trade agreements with the U.K. and China, which boosted bond yields as markets priced in expectations of higher prices and reduced foreign demand. While U.S. tariff policies remain in flux, the agreements suggest increased costs for imported goods, though these effects have yet to show up in CPI inflation data.”

Jones noted that while steady, persistently high mortgage rates and home prices mean that buyers continue to grapple with affordability challenges but pointed to some bright signs.

“For-sale inventory has reached its highest level in over five years, offering buyers more choices across many parts of the country,” she said. “New construction activity has been a major driver of this trend in some regions as builders deliver smaller and more affordable home inventory.”

Realtor.com’s reporting this week showed roughly one in four listings in the South is newly built, contributing to climbing inventory and easing prices across much of the region. However, in the Northeast, only about one in 10 homes for sale is newly built, and these relatively scarce homes see a bigger price premium as a result.

“For buyers sidelined by affordability constraints, the rental market may offer temporary relief,” Jones added. “In April, national rents were down 3.4% from their peak, with even steeper declines in some markets.” 

This week’s numbers: 

• The 30-year FRM averaged 6.81% as of May 15, 2025, up from last week when it averaged 6.76%. A year ago at this time, the 30-year FRM averaged 7.02%.
• The 15-year FRM averaged 5.92%, up from last week when it averaged 5.89%. A year ago at this time, the 15-year FRM averaged 6.28%.

For the full report, click here. 

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