Title: Mortgage Rates Take a Breather After Trump's Tariff Turmoil
Mortgage rates have dropped in the past three weeks, reaching more affordable levels after hitting a high point in 2025.
After two weeks of leveling off, mortgage rates took a breather last week following President Trump's tariff tantrum that triggered a mortgage rate surge in mid-April. Luckily for homebuyers, 30-year fixed-rate loan rates have dipped: a 19-point drop over three weeks has brought the average down to a relatively palatable 6.95%.
If you're looking to refinance an existing mortgage, you can find our daily coverage on refinancing rates, including the national average refi rate for various loan types, as well as state-by-state averages. Check it out!
The financial markets have been on a rollercoaster ride due to Trump's evolving tariff policy. After an initial stock market sell-off caused a drop in 10-year Treasury yields, pushing mortgage rates lower, this trend reversed within two days, with bond yields soaring, confounding many experts and lifting mortgage rates.
However, on one particular Friday three weeks ago, mortgage rates took another turn, continuing their descent last week and maintaining most of that drop. Here's a breakdown of the changes for different types of new purchase loans over the past three weeks:
30-Year Mortgage Rates See Positive Shift
In the past three weeks, 30-year new purchase loan rates have shed 19 basis points to average 6.95% on Friday. This is a welcome improvement compared to the 7.14% average registered on April 11, nearing the two-year low of 5.89% reached in September 2022.
15-Year Mortgage Rates Follow Suit
Rates on 15-year new purchase loans have plummeted more dramatically, reducing by 34 basis points over the past three weeks to average 5.97% on Friday. Although this reading is still higher than the September 2022 two-year low of 4.97%, it's a massive improvement over the recent highs.
Jumbo 30-Year Loans Sees Decline
Rates on jumbo 30-year new purchase loans slid 25 basis points across three weeks, dropping to a Friday average of 6.90%. This figure represents a substantial decrease compared to the 7.15% high reached in early April 2025.
A jumbo mortgage is one that exceeds the maximum loan limits for Fannie Mae and Freddie Mac conforming loans. For single-family homes in most of the U.S., the limit stands at $806,500, but it may be higher in certain expensive areas.
For a glimpse at how much the recent rate reductions affect monthly payments for new borrowers, you can find our tables below detailing the principal-plus-interest payment for various loan amounts with a 30-year, 15-year, or jumbo-30 Fixed Rate mortgage.
Sources:1. Optimal Blue Mortgage Market Indicators (www.mortgageindicators.com)2. Freddie Mac Primary Mortgage Market Survey (www.freddiemac.com/ pmms)3. Zillow Mortgage Rates (www.zillow.com/mortgage-rates)4. National Association of Realtors (www.realtor.com)5. Bankrate (www.bankrate.com/mortgages)
- The financial markets, influenced by Trump's tariff policy, have led to fluctuations in 10-year Treasury yields and mortgage rates, with the latter witnessing a subsequent drop in personal-finance context, particularly for 30-year fixed-rate loans.
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- For those considering the refinance of an existing mortgage, it's essential to stay updated on the current market trends, as the average 30-year refi rate can significantly impact a borrower's personal-finance and business strategies, depending on the loan type and state-specific averages.
