E A

Mortgage rates have risen as economic uncertainty continues, making it harder to buy affordable homes. This week saw 30-year fixed mortgage rates climb to 6.83%, up slightly from last week, while 15-year fixed rates rose to 6.01%. Experts point to ongoing inflation, fears of recession, and worries about international trade affecting the economy. The Federal Reserve, which decides interest rate policies, has not made any rate changes this year after cutting rates three times last year, showing a cautious approach to managing economic risks.

On May 9, 2025, mortgage rates in the United States increased to an average of 6.80% for a 30-year fixed-rate loan following President Donald Trump's announcement of a trade agreement with the United Kingdom. Investors saw this agreement as a positive sign that the U.S. economy might avoid a potential recession, leading to increased optimism across financial markets. As a result, yields on the 10-year Treasury notes, which directly affect mortgage rates, rose—making home loans more expensive for homebuyers. However, this rise comes at a time when Americans are already struggling with high inflation, steep housing prices, and limited homes for sale, creating even greater challenges for those looking to purchase a home.

U.S. mortgage rates went up today, hitting an average of 6.80% for a 30-year fixed loan. This jump happened after President Donald Trump revealed a new trade agreement with the United Kingdom, which made investors feel positive about the economy. As investors showed more optimism, it drove up the return on the 10-year Treasury bond—an important factor influencing mortgage rates. Although this development has lessened worries about a recession in the near future, it also means borrowing money for a home just became more costly for homebuyers, at least for the short term.

On May 9, 2025, mortgage rates rose to around 6.80% because of President Trump's new trade deal with the United Kingdom. This rate increase is mostly due to investor optimism after the new agreement, causing a rise in the 10-year Treasury yield. While the trade deal brings hope for a stronger economy and reduces fears of an upcoming recession, higher mortgage rates can make it harder for people to buy homes. For homebuyers, this means increased borrowing costs and potentially tougher decisions on purchasing property, even though the overall job market and economy may benefit from increased trade activity.

Mortgage rates have continued to rise in May 2025, with the average interest rate on a 30-year mortgage now at 6.83%, making it harder for many people to buy homes. This situation is especially challenging because home prices are already very high, and there aren't enough homes available on the market. Part of what's causing mortgage rates to rise is general economic uncertainty: although the Federal Reserve hasn't increased its interest rates this year in an effort to keep the economy stable, it remains cautious about inflation, possible global trade conflicts, and growing worries about an economic downturn. These factors add complexity to decisions about borrowing money and planning for future home ownership.

Mortgage rates have recently increased, adding further pressure to an already challenging housing market. The average 30-year fixed-rate mortgage rose this week to 6.83%, while the average 15-year fixed-rate reached 6.01%. These higher mortgage rates, combined with soaring home prices and a limited number of homes available for purchase, have made buying a home more difficult for many individuals and families. The Federal Reserve, responsible for managing the nation’s monetary policy, has chosen to keep interest rates unchanged so far in 2025. Their cautious approach comes amid ongoing economic uncertainty, concerns about inflation, and worries that trade tensions could push the economy closer to a recession.