US 30-year mortgage rate slightly decreases to 6.81%, but still near highest level in 2 months

From Yahoo Finance: 2025-04-24 12:04:00

The average rate on a 30-year mortgage in the U.S. dipped to 6.81%, down from 6.83%, but still near its highest level in over two months. Borrowing costs on 15-year fixed-rate mortgages also fell, with the average rate dropping to 5.94% from 6.03% last week.

Mortgage rates are impacted by factors like global demand for U.S. Treasurys, Federal Reserve interest rate decisions, and bond market investors’ inflation expectations. The 10-year Treasury yield, which influences mortgage rates, spiked to 4.5% due to market turmoil from the ongoing trade war.

Despite the slight decrease in the 10-year Treasury yield to 4.34%, high mortgage rates persist, affecting homebuyers’ purchasing power. The elevated rates have slowed home sales this spring, with sales of previously occupied U.S. homes seeing the largest monthly drop since November 2022.

Last week, mortgage applications fell by 12.7% as rates approached 7%, leading many potential borrowers to wait for more rate and economic clarity. Economists anticipate continued rate volatility, with the average 30-year mortgage rate expected to hover around 6.5% this year.



Read more at Yahoo Finance: Average rate on a US 30-year mortgage eases to 6.81%, hovering near highest level in over two months