Mortgage rates rose this week, with the 30-year fixed-rate mortgage climbing five basis points from 6.76% to 6.81%, according to Freddie Mac’s weekly rate survey. The 15-year rate increased three basis points to 5.92%.
“The 30-year fixed-rate mortgage remained below the 7% threshold for the 17th consecutive week,” Freddie Mac Chief Economist Sam Khater said in a statement. “Stable mortgage rates coupled with moderately rising inventory are attracting homebuyers into the market, with purchase application activity up 18% from last year.”
The 7% threshold was last breached in January, when the 30-year rate averaged 7.04% for the week ending Jan. 16. Mortgage rates saw a steep decline the first week of March before experiencing a sharp spike in mid-April amid the Trump’s administration rapidly evolving global tariff policies.
A rise in mortgage rates was expected this week following Monday’s announcement of a 90-day pause in the U.S.-China trade war, during which time the two countries will reduce tariffs by 115% as they attempt to negotiate a more permanent trade agreement. The U.S. went from a high of 145% to 30% tariffs and China dropped theirs from 125% to 10%.
The 30-year mortgage rate closely correlates to 10-year Treasury yields, which surged Monday as investors dumped bonds for equities amid a stock market rally after the tariff announcement.
