The average interest rate on 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) in the U.S. rose for a second consecutive week, hitting 6.9% for the week ending April 18, 2025, up from 6.81% the week prior, according to the Mortgage Bankers Association.
US mortgage rates at two-month high
This marks the highest level in nearly two months and reflects a broader rise in bond yields, amplified by renewed criticism of Federal Reserve Chair Jerome Powell from former President Donald Trump.
The spike in rates had a swift impact on mortgage activity. Total application volume plummeted by 12.7%—the steepest weekly drop since October—following an 8.5% decline the previous week. The downturn was fueled by escalating U.S. trade tensions, which triggered a sell-off in longer-dated Treasuries and mortgage-backed securities.
Refinance applications fall sharply
Refinance applications, which are particularly sensitive to rate movements, fell sharply by 20%, while purchase applications declined by 7%, despite signs of improving housing inventory. The data underscores growing pressure on the housing market as borrowing costs rise and economic uncertainty weighs on buyer sentiment.
