Mortgage Rates Decline Slightly Amid Market Volatility
Average 30-year mortgage rates have eased to 6.89% this week, a slight decline from 6.95% the previous week. Freddie Mac data also shows 15-year mortgage rates falling to 6.05% from 6.12%.
Market volatility surrounding the Trump administration's tariff plans has influenced mortgage rate fluctuations. However, Sam Khater of Freddie Mac emphasizes the stability of rates in the past month and the economy's strength.
Despite market concerns about the economic implications of tariffs, investors remain optimistic. Zillow's Kara Ng highlights concerns about the potential impact on growth and economic activity, leading to lower Treasury yields. Mortgage rates, however, have not followed suit.
Volatility is expected to persist in mortgage rates as economic conditions and policy changes unfold. Mortgage application activity remains mixed, with refinancing applications rising 12% and applications for new home purchases falling 4%.
Key economic indicators, such as jobs data and inflation readings, will provide further insights into the economy and the Federal Reserve's potential rate cuts.