What happened to mortgage rates this week
The Freddie Mac 30-year mortgage rate held steady at 6.76% this week as investors awaited the Federal Reserve’s interest rate decision. As widely anticipated, the Fed kept its policy rate unchanged at the May FOMC meeting, citing a balance between inflation and unemployment risks—though it noted those risks have increased. Following the announcement, the 10-year Treasury yield declined, reflecting growing uncertainty about the U.S. economic outlook.
Looking ahead, the Fed’s wait-and-see approach is likely to keep mortgage rates at a high 6% in the near term, unless major policy developments or economic shifts occur, such as notable outcomes from the upcoming U.S.-China trade talks scheduled for this weekend.
What it means for the housing market
High home prices and elevated mortgage rates remain significant hurdles for prospective buyers. At the same time, growing anxiety around tariffs and rising costs is adding further pressure on household budgets. While the full impact of tariffs has yet to materialize, increasing concerns about personal finances and job security might also prompt some buyers to delay their plans.
Encouragingly, those who do choose to move forward in their home search are likely to benefit from a slower-paced housing market. They may have more time to make decisions and greater negotiating power, as the share of price reductions in April 2025 reached its highest level for any April since at least 2016.