What happened to mortgage rates this week
The Freddie Mac 30-year mortgage rate increased 21 basis points to 6.83% this week, following the recent sharp spike in 10-year treasury yields. Last week, growing investor concerns about international relations and global trade tensions triggered a sharp sell-off in government bonds, pushing the 10-year treasury yield up to 4.5%. This matters because the 10-year yield serves as a key benchmark for mortgage rates—when it rises, mortgage rates typically follow suit. Fortunately, markets have shown signs of calming this week, with yields settling around 4.3%.
Looking ahead, the potential impact of tariffs on both inflation and broader economic softening remains unclear. This uncertainty adds to ongoing speculation about the Fed’s next move on interest rates, the direction of the 10-year treasury yield, and, ultimately, where mortgage rates are headed.
What it means for the housing market
While many homeowners still feel “locked in” by elevated mortgage rates, their patience is wearing thin. According to a recent Realtor.com survey, 78% of potential sellers expect interest rates to either remain the same or rise in the next 12 months—suggesting that waiting may not pay off. As a result, we’re seeing an ongoing rise in new listing activity, especially as we are in what is the best week of the year to sell
Looking forward, competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land. 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.