Mortgage rates rose significantly, reaching 6.83% for a 30-year fixed home loan, the largest weekly increase in a year, influenced by surging 10-year Treasury yields due to global trade tensions. The rates, although higher, remain below the 7% mark for the thirteenth consecutive week. Experts signal a stronger start to the spring homebuying season compared to last year, despite uncertainties surrounding tariff impacts on inflation and economic conditions, which could affect future interest rate decisions by the Fed.
"The 30-year fixed-rate mortgage ticked up but remains below the 7% threshold for the thirteenth consecutive week," says Sam Khater, Freddie Mac's chief economist. "At this time last year, rates reached 7.1% while purchase application demand was 13% lower than it is today, a clear sign that this year's spring homebuying season is off to a stronger start."
"Looking ahead, the potential impact of tariffs on both inflation and broader economic softening remains unclear," says Realtor.com® Economist Jiayi Xu. "This uncertainty adds to ongoing speculation about the Fed's next move on interest rates, the direction of the 10-year treasury yield, and, ultimately, where mortgage rates are headed."
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