MW Mortgage rates jump higher, casting a chill over the housing market

By Aarthi Swaminathan

The 30-year fixed-rate mortgage rises nearly 30 basis points in just two weeks, industry group says

Mortgage rates shot up for the second week in a row, to a two-month high, as home buyers are taking a break from the market.

Mortgage rates rose nearly 30 basis points in two weeks, due to increased uncertainty over the future of the U.S. economy as the Trump administration continues to levy tariffs on imported goods.

The 30-year mortgage rose to an average contract rate of 6.9% as of April 18, which sapped the energy out of home buying and refinancing. The data came from a weekly report by the Mortgage Bankers Association, an industry trade group.

Purchase activity, which refers to home buyers applying for mortgages to purchase a home, fell 6.6% from a week before.

The data suggests that home buyers are taking a break from the market in the midst of the busiest season for the real-estate industry.

Buyers are spooked. Not only are mortgage rates moving around in a volatile manner, buyers are also facing an uncertain economic climate and increasing job insecurity.

Sellers are upping incentives to keep buyers interested. In one analysis by real-estate brokerage Redfin, an increasing share of home sellers were offering concessions to prospective owners. Concessions include money given to buyers that can be used for repairs or closing costs.

Refinance activity fell 20% from a week prior. Refinance demand has plummeted as homeowners find little incentive to refinance their current mortgage to a high interest rate.

Mortgage rates jump across most loan types

Mortgage rates were mixed over the past week, but rose for most loan types.

The average contract rate for a 30-year mortgage for homes sold for $806,500 or less was 6.9% for the week ending April 18. That was up 9 basis points from the previous week.

The rate for jumbo loans, or a 30-year mortgage for homes sold for over $806,500, was 6.9%, up 6 basis points from the previous week.

The average rate for a 30-year mortgage backed by the Federal Housing Administration was 6.56%, up 4 basis points from a week before. Those loans are often used by first-time home buyers.

The average 15-year mortgage rate was up 9 basis points, to 6.20%.

The average rate for five-year adjustable-rate mortgages was down 10 basis points from the previous week, to 6.01%.

-Aarthi Swaminathan

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 23, 2025 07:00 ET (11:00 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.