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3mo ago

U.S. Mortgage Rates Jump to 6.83%, Marking Largest Weekly Increase in a Year

The sharp rise, tied to bond market volatility from trade tensions, comes as spring homebuying demand remains strong.

Homes in Hercules, California, on Tuesday, March 25, 2025. The Trump administration's tariffs have injected uncertainty into the bond market, impacting mortgage rates.
A worker makes repairs to a home under construction.

Overview

  • The average 30-year fixed mortgage rate climbed to 6.83% for the week ending April 17, the highest level since late February.
  • This marks the largest one-week increase in mortgage rates in nearly a year, up from 6.62% the previous week.
  • Rates on 15-year fixed mortgages also rose, reaching 6.03%, compared to 5.82% last week.
  • The rise in mortgage rates follows a spike in the 10-year Treasury yield to 4.5%, driven by a sell-off in bonds linked to escalating U.S.-China trade tensions and new tariffs announced by the Trump administration.
  • Despite higher borrowing costs, spring homebuying demand remains resilient, with purchase applications 13% higher than this time last year.