Mortgage rates took a sharp drop last week but rebounded this week, wiping out the gains from the previous decline for homebuyers. The 30-year fixed-rate mortgage rose to 6.85%, its highest level in over a month.
The sudden reversal was largely due to a decrease in economic fears following discussions of global tariff negotiations and deals. Bond yields fell as investors rushed back into the market, causing bond yields to rise again. As a result, mortgage rates followed suit.
Prior to this week’s jump, mortgage rates had been relatively stable since February, with some minor fluctuations. However, homebuyers are still facing challenges such as high housing prices and dwindling confidence in the economy.
Analysts expect the next significant move in mortgage rates could come from new economic data releases, including Thursday’s consumer price index report and Friday’s produce price index report. These reports have historically influenced rate momentum.
Experts attribute last week’s initial drop to a “knee-jerk reaction” to dire economic expectations following President Trump’s announcement of global tariffs. However, with economic fears subsiding, rates are now back on track, waiting for the next development in the market.
Source: https://www.cnbc.com/2025/04/08/mortgage-rates-higher-tariff-uncertainty.html