30-Year Mortgage Rates Dip Slightly Despite Market Volatility
30-year mortgage rates fell two basis points to 6.87% this week through Wednesday, according to Freddie Mac data. This marks the lowest rate recorded in 2025, but rates remain within a narrow range after reaching a high of 7.04% in mid-January.
The average 15-year mortgage rate rose slightly to 6.09%.
Mortgage rates are influenced by bond markets and expectations about interest rate changes. Ten-year Treasury yields, which mortgage rates track closely, initially jumped after inflation data showed prices rose above the Federal Reserve's target. However, yields fell sharply the following day after President Trump announced reciprocal tariffs.
Experts predict mortgage rates will remain at current levels due to market volatility and the Fed's unlikely decision to lower interest rates to curb inflation.
Despite the dip in rates, mortgage applications for home purchases declined by 2% last week. Refinancing applications, however, increased.
Overall, mortgage rates remain near 7% and are unlikely to drop significantly in the near future. This suggests that the days of sub-4% rates may be over for the foreseeable future.