Overview

• After a dramatic 44-basis point surge last week, 30-year purchase mortgage rates have retreated to 7.07%, while refinance rates dropped to 7.23%.
• The spike in rates followed President Trump's April 2 tariff announcement, which triggered a sharp reversal in Treasury yields.
• The Federal Reserve's decision to hold rates steady signals limited prospects for significant rate cuts in the near term, adding to market uncertainty.
• Rising fixed mortgage rates are driving more borrowers toward adjustable-rate mortgages (ARMs), which offer lower initial rates but carry future risks.
• The housing market is showing signs of cooling, with mortgage applications down 8.5% and refinancing volumes dropping over 12% in the past week.