Mortgage rates rise due to uncertainty about President Trump's tariff policies

From Yahoo Finance: 2025-04-13 06:00:00

Mortgage rates have been volatile this week, with the average 30-year fixed rate increasing by 50 basis points to 6.90%. Home loan rates are rising due to uncertainty about President Trump’s tariff policies, particularly with China. If you’re buying a home soon, focus on improving finances and shopping for lenders.

The current mortgage rates, according to Zillow, are as follows: 30-year fixed: 6.90%, 20-year fixed: 6.75%, 15-year fixed: 6.21%, 5/1 ARM: 7.24%, 7/1 ARM: 7.38%, 30-year VA: 6.46%, 15-year VA: 6.01%, 5/1 VA: 6.25%. These are national averages rounded to the nearest hundredth.

Today’s mortgage refinance rates, per Zillow, are: 30-year fixed: 6.91%, 20-year fixed: 6.66%, 15-year fixed: 6.27%, 5/1 ARM: 6.86%, 7/1 ARM: 7.27%, 30-year VA: 6.62%, 15-year VA: 6.26%, 5/1 VA: 6.34%. Refinance rates are often higher than purchase rates.

If you’re considering a mortgage, think about a 30-year vs. 15-year term. A 15-year mortgage comes with a lower interest rate but higher monthly payments. With a $300,000 mortgage at 6.90%, your 30-year payment would be about $1,976, while a 15-year term at 6.21% would be $2,566.

Fixed-rate mortgages lock in your rate for the loan’s life, while adjustable-rate mortgages have a fixed period before rates adjust yearly. Rates can start lower with ARMs, but fixed rates may be lower now. Consider your options carefully with your lender.

Mortgage lenders offer the best rates to those with higher down payments, great credit scores, and low debt-to-income ratios. To secure a lower rate, focus on saving, improving credit, and paying down debt before applying for a mortgage. Waiting for rates to drop might not be the best strategy.

When choosing a lender, apply for preapproval with multiple companies to compare rates and terms. Look beyond just interest rates to the APR, which includes fees and points. This reflects the true cost of borrowing money and helps in choosing the best lender for your needs.



Read more at Yahoo Finance: Rates could stay unpredictable for months