U.S. Mortgage Rates Climb to 6.83% Amid Tariff Jitters and Bond Sell-Off/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The average U.S. rate on a 30-year mortgage rose to 6.83% this week, the highest level since February, according to Freddie Mac. Rising rates may discourage homebuyers as the spring housing season heats up.
U.S. Mortgage Rates Hit 6.83% — Quick Look
- 30-year fixed rate rises to 6.83%, up from 6.62% last week
- Highest level since February 20 amid bond market volatility
- Tariff-driven bond selloff pushes Treasury yields higher
- Mortgage applications fall 8.5% as borrowing costs climb
- Experts urge buyers to ‘stress-test’ budgets for rate swings
Mortgage Rates Spike to 6.83%, Squeezing Spring Homebuyers
Deep Looks
April 18, 2025 — LOS ANGELES — Mortgage rates are on the rise again, and this week marked a new high for the spring buying season. The average 30-year fixed mortgage rate jumped to 6.83%, up from 6.62% the previous week, Freddie Mac reported Friday. It’s the highest level since February 20, when rates peaked at 6.85%.
That’s a significant uptick during what is typically the busiest time of year for real estate transactions — and a potential headwind for would-be buyers already grappling with high home prices and limited affordability.
Treasury Yields and Tariff Fears Drive Rate Climb
Mortgage rates tend to track movements in the 10-year U.S. Treasury yield, which spiked last week due to a sell-off in government bonds. That sell-off was driven in part by investor concerns over the Trump administration’s expanding trade war and new tariffs, which rattled financial markets.
The 10-year yield soared to 4.5% last week before retreating slightly to 4.32% on Thursday. Higher yields mean lenders must offer higher interest rates on mortgages to maintain returns.
“Competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land,” said Jiayi Xu, an economist at Realtor.com.
Adjustable-Rate Mortgages on the Rise
As fixed rates climb, more buyers are turning to adjustable-rate mortgages (ARMs) to lock in lower initial payments. The share of ARM applications hit its highest level in 17 months, according to the Mortgage Bankers Association. ARMs typically offer lower rates upfront, adjusting higher later, and can be appealing during times of rising borrowing costs.
Meanwhile, mortgage applications overall dropped 8.5% last week, signaling that some buyers are hitting pause.
15-Year Rates and Refinance Options
Homeowners looking to refinance aren’t spared either. The 15-year fixed mortgage rate rose to 6.03%, up from 5.82% last week. A year ago, it was 6.39%.
Housing Market Still Struggling to Recover
The housing market has been sluggish since late 2022, when rising rates ended the pandemic-era buying frenzy. Home sales in 2024 were at their lowest in nearly three decades.
In February, lower rates and an increase in listings led to a slight rebound in home sales month-over-month, but the numbers were still down compared to last year.
“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,” Xu advised.
A Mixed Outlook for Buyers
Economists had forecast the average 30-year rate would hover near 6.5% for much of 2025, but volatility in bond markets and uncertainty surrounding global trade and Fed policy could push those numbers higher.
Still, buyers able to navigate today’s higher rates might benefit from a cooling market, with more listings and lower asking prices in select metro areas.
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