Interest rates dropped to 6.87% on a 30-year fixed-rate mortgage, the fourth straight week of declines, according to Freddie Mac.

The rate dropped only .02% and was still higher than the same week a year ago when rates averaged 6.77%. Still, declining rates could bring homebuyers and people who want to refinance back to the market, said Sam Khater, Freddie Mac’s chief economist, in a statement.

 “The 30-year fixed-rate mortgage continued to inch down this week, reaching its lowest level thus far in 2025,” Khater said. “Recent mortgage rate stability is benefitting potential buyers, as purchase demand is stronger than this time last year. This is an indication that a thaw in buyer activity could be on the horizon.”

The 15-year fixed-rate mortgage actually increased, rising to 6.09%, up from 6.05% the week before. A year ago, the 15-year rate averaged 6.12%.

Interest rates had reached 7.04% in mid-January. The last time that rates were below 6.87% was Christmas week when rates reached 6.85%.

The Mortgage Bankers Association pointed this week to falling rates as a reason for an uptick in refinances, which has fueled an overall increase in mortgage applications.