After a rapid single-week surge, mortgage rates leveled off, allowing lenders and borrowers to take a breath from the volatility induced by recent political and economic news.
The 30-year fixed-rate mortgage averaged 6.81% on April 24, according to Freddie Mac's Primary Mortgage Market Survey. The average nudged downward after it
At the same time, the 15-year fixed average also headed in reverse after a sudden spike, dropping 9 basis points to 5.94% from the previous week's 6.03%. In the same week of 2024, the average was 50 basis points higher at 6.44%.
Despite the recent sudden acceleration, "over the last couple of months, the 30-year fixed-rate mortgage has fluctuated less than 20 basis points," noted Freddie Mac Chief Economist Sam Khater in a press release.
The numbers, though, belie much of the volatility that has occurred since February, with significant up-and-down market swings impacting mortgage rates, sometimes within the same week. Constantly evolving tariff policies and potential monetary policy moves, including the suggested termination of Federal Reserve Chair Jerome Powell, drove much of the past week's movements.
"Headlines rather than economic data have been the dominant drivers of day-to-day volatility in the stock, bond and mortgage markets," said Kara Ng, senior economist at Zillow Home Loans in a statement issued Wednesday evening.
This week's 30-year rate settled at its mark after Treasury yields dropped from earlier in the week. The 10-year Treasury, which influences the direction of mortgage rates, stood at 4.34% as of noon Thursday, 5 basis points below its close of 4.39% the previous day.
One week ago, the 10-year yield closed at 4.33% on Apr. 17, just off its current mark. In the subsequent seven days, though, yields fluctuated from 4.28% to 4.43%, with tariffs and President Trump's remarks resulting in increased volatility.
"The economic situation is rapidly evolving, making it hard to predict the direction of mortgage rates with any conviction," Ng continued.
Earlier this month average mortgage rates hit a two-month low, shortly after 10-year Treasurys briefly closed below 4%. The quick upward movement since then has made a noticeable dent on borrowing, according to the Mortgage Bankers Association.
MBA reported
"Many potential borrowers will likely stay on the sidelines until they have a better idea of the direction that rates, and the economy, are headed," MBA President and CEO Bob Broeksmit said in a statement on Thursday.
The
Signs of the unpredictable state facing mortgage lenders were evident in other rate indicators on Thursday. While Freddie Mac saw the 30-year average declining, Zillow reported the rate at 7.02% on Thursday morning, 5 basis points higher from the mean of 6.97% at the end of last week.
Product pricing engine Optimal Blue, meanwhile, also published a higher average 30-year conforming rate. The average of 6.82% on Wednesday was 5 basis points above its 6.77% mark seven days earlier.
Likewise, Lender Price reported a 6.91% average for the 30-year fixed, with the rate also rising 5 basis points from a week earlier when it sat at 6.86%.
