Following the sharp sell-off in government bonds last week that pushed the 10-year treasury yield up to 4.5%, as is usually the case, mortgage rates followed suit, this week rising to their highest point in two months.
The latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday shows the 30-year fixed-rate mortgage (FRM) averaging 6.83%, up from last week’s average of 6.62%.
“The 30-year fixed-rate mortgage ticked up but remains below the 7% threshold for the thirteenth consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “At this time last year, rates reached 7.1% while purchase application demand was 13% lower than it is today, a clear sign that this year’s spring homebuying season is off to a stronger start.”
As consumers remain on edge due to a wavering economy, mortgage applications took a hit this week, falling 8.3% after a 20% surge the previous week.
“Economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move for. ward with a purchase,” said MBA SVP and Chief Economist Mike Fratantoni.
Realtor.com Economist Jiayi Xu said after the storm of the bond sell-off and subsequent surge of the 10-year last week, markets have shown signs of calming this week, with yields settling around 4.3%, but cautioned, “The potential impact of tariffs on both inflation and broader economic softening remains unclear. This uncertainty adds to ongoing speculation about the Fed’s next move on interest rates, the direction of the 10-year treasury yield, and, ultimately, where mortgage rates are headed,” Xu said.
In a speech on Wednesday, Fed Chair Jerome Powell did not specifically address what the Fed may do with interest rates, which are currently in the 4.25% – 4.5% range, and added that President Trump’s tariffs, which, while mostly now within a 90-day pause period, are still roiling the stock market due to the uncertainty of what may or may not happen.
“The tariffs are larger than forecasters had expected, certainly larger than we expected, even in our upside case,” said Powell. “They are highly likely to generate at least a temporary rise in inflation.”
Trump later lambasted Powell for his comments, writing on his Truth Social platform, “…‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
The ECB refers to the European Central Bank, which yesterday announced it was cutting its benchmark rate by 25 basis points to 2.25%.
Meanwhile, Realtor.com’s Xu advised buyers prepare for a range of financial possibilities as the uncertainty continues.
“Looking forward, competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land,” said Xu. “For buyers, the smartest move is to stress-test their budgets across a range of possible rate scenarios to stay prepared—no matter which way the winds shift.”
This week’s numbers:
- The 30-year FRM averaged 6.83% as of April 17, 2025, up from last week when it averaged 6.62%. A year ago at this time, the 30-year FRM averaged 7.1%.
- The 15-year FRM averaged 6.03%, up from last week when it averaged 5.82%. A year ago at this time, the 15-year FRM averaged 6.39%.
To view the full report click here.
