Mortgage rates rise due to easing US-China trade tensions, positive economic news

From Yahoo Finance: 2025-05-15 12:04:00

Mortgage rates edged up this week as US-China trade tensions eased, boosting Wall Street’s confidence in avoiding a recession. The average 30-year rate rose to 6.81%, while 15-year rates hit 5.92%. Treasury yields also increased after positive economic news reduced the likelihood of a Fed rate cut.

Fading recession fears and a cooling inflation rate in April suggest the Fed may hold interest rates steady for now. Traders anticipate no rate cuts until September according to CME FedWatch. Although rates are still high, some buyers are proceeding with purchases, with mortgage applications for new homes up 2%.

Despite elevated rates, some buyers are still entering the market. Mortgage applications for new home purchases have increased slightly, while refinancing applications have dipped. Treasury yields and mortgage rates are closely linked to Fed policy expectations and economic conditions.



Read more at Yahoo Finance: Mortgage rates move higher on positive economic news