Rates Inch Down But Future Moves Remain Up In The Air

Mortgage rates dipped a little lower last week but remained firmly in the mid-6% range.

Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.64%, down slightly from the week prior’s 6.65%. 

A year ago at this time, the 30-year fixed-rate mortgage averaged 6.82%.

Fifteen-year rates also fell from 5.89% to 5.82%. Last year, they were at 6.06%.

“Over the last month, the 30-year fixed-rate has settled in, making only slight moves in either direction. This stability is reassuring, and borrowers have responded with purchase application demand rising to the highest growth rate since late last year,” said Sam Khater, Freddie Mac’s Chief Economist. 

Where rates will go in the face of sweeping new tariffs announced by the Trump administration remains unclear. 

If the move prompts sticky inflation, the Central Bank may decline to cut its benchmark rate further, which would likely keep rates higher for longer. Mortgage rates follow yields on government bonds, which inflation tends to push up.

But some analysts are more concerned about a recession, which would push borrowing costs down but hamper Americans’ spending power.

It’s difficult to predict the long-term effects. In the short term, however, rates moved down after Trump’s announcement as the stock market absorbed a major blow.

“[R]ates have been benefiting from the market chaos that’s been hurting stocks, and stocks got hurt quite a bit over the past 24 hours,” Matthew Graham of Mortgage News Daily wrote.