Overview

• Debate over President Trump’s proposed tax bill sent bond yields higher, lifting the 30-year fixed mortgage rate to 7.12% on May 23
• Mortgage applications to purchase homes climbed 2% week-over-week and are 18% above this time last year, according to the Mortgage Bankers Association
• Refinance requests fell 7% last week as 30-year refinance rates held near 7.29%, reflecting borrowers responding to higher borrowing costs
• The Federal Reserve held its benchmark rate steady at its March meeting and projected just two quarter-point cuts for the rest of 2025
• State-level rate variation remains wide: New York and California borrowers saw averages as low as 6.94%, while Alaska and West Virginia topped 7.31%