Mortgage rates in the United States rose again this week, reaching about 6.80% to 6.95% for the average 30-year fixed mortgage. This increase happened after President Trump announced a new trade deal with the United Kingdom, which boosted financial markets and caused yields on the 10-year Treasury note—a key factor affecting mortgage costs—to rise. With mortgage rates climbing, homebuyers are facing higher borrowing expenses, creating new challenges in a housing market that already struggles with expensive homes and limited availability. Meanwhile, the Federal Reserve decided to keep interest rates unchanged for now, citing ongoing inflation concerns and uncertainty over international trade tensions.

Mortgage rates rose today after President Trump announced a new trade agreement between the United States and the United Kingdom. This increase came following two days of declining rates, with 30-year mortgages now averaging between 6.80% and 6.95%. The rate for 15-year mortgages also went up slightly, reaching about 6.01%. The reason for the rise is that investors feel more hopeful about the economy because of the trade deal. This optimism caused Treasury bond yields to go up, which directly affects mortgages, making home loans more expensive. While rising mortgage rates typically indicate a stronger economy, they also mean buying a home could become more costly for buyers.

Mortgage rates in the U.S. recently rose slightly to an average of 6.95%, after briefly dipping earlier in the week. This rise reflects ongoing unpredictability caused by economic and political factors, such as the announcement by President Donald Trump of a new trade deal with the United Kingdom. Although current rates remain below their highest point of around 8% from late 2023, they're still substantially higher than last September's low rates. The result is increased challenges for potential homebuyers, who must cope with high borrowing costs and limited housing choices in the current market.

Mortgage rates rose slightly this week, influenced by President Trump's recent trade agreement announcement with the United Kingdom. The average 30-year fixed mortgage rate increased to approximately 6.80-6.83%, after dropping slightly earlier in the week. Investors reacted positively to the new U.K. deal, expecting economic growth, which led to higher yields on 10-year Treasury bonds and pushed mortgage rates higher. Despite economic challenges, the Federal Reserve chose to keep interest rates unchanged during its May 7 meeting, reflecting continued caution due to ongoing uncertainty.

As of May 2025, mortgage rates in the United States have risen, with the average 30-year fixed mortgage nearing 6.80% to 6.83%. This increase is largely due to global economic changes, including a newly announced trade deal between former President Donald Trump and the United Kingdom. This deal boosted investor confidence, leading investors to seek higher returns from U.S. government bonds, which in turn raised mortgage rates. At the same time, the U.S. Federal Reserve has stopped cutting interest rates, taking a cautious pause in response to continuing inflation pressures and uncertainty in the economy. Higher mortgage rates mean borrowing money to buy homes is now more expensive for American families.