Lisa Mailhot | April 25, 2025
Buyers
Mortgage rates edged down slightly this week, with the average rate on 30-year fixed loans falling to 6.81%, down from 6.83% the previous week, according to Freddie Mac. While still relatively high, this marks a subtle but meaningful shift—especially compared to the 7.17% rate during the same period last year.
“The average mortgage rate decreased slightly this week,” says Sam Khater, chief economist at Freddie Mac. “Over the last couple of months, the 30-year fixed-rate mortgage has fluctuated less than 20 basis points, and this stability continues to bode well for buyers and sellers alike.”
Mortgage rates are moving in response to volatility in the broader economic and political landscape. Most notably, the 10-year Treasury yield—a key indicator for mortgage pricing—has seen dramatic swings as markets digest new tariff proposals and controversial statements from President Trump directed at Federal Reserve Chair Jerome Powell.
“The recent back and forth on tariffs and other economic policy has led to market turmoil and a general sense of unease, which can be felt in stubbornly high mortgage rates,” according to Realtor.com®’s Hannah Jones.
In a surprising turn, new-home sales rose by 7.4% in March compared to February and climbed 6% year-over-year. The key driver? Affordable inventory.
“This unexpected result shows that builders are adjusting inventory to attract buyers, and home shoppers are eager to take advantage of low-priced options, even amid high borrowing costs,” adds Jones
Housing supply is on the rise compared to last year, giving buyers a broader selection of homes to explore—especially refreshing after a period where inventory was extremely limited.
Behind every mortgage rate is a mix of macroeconomics and personal finances. Rates are primarily influenced by the 10-year Treasury bond yield, which reflects economic growth forecasts, inflation expectations, and investor confidence.
Mortgage rates often move in tandem with 10-year Treasury yields, which respond to factors like inflation and economic growth. When those yields climb, borrowing costs usually increase too. Still, the rate you personally receive depends on more than just market forces, including:
Your credit score
The type of loan
Your down payment
The term of your mortgage
The type of property you’re buying
Stronger financial profiles generally lead to better rates. So whether you’re shopping for your first home or refinancing, having your financial ducks in a row is a huge advantage.
A strong credit score plays a key role in securing a favorable mortgage—it can be the difference between a competitive rate and a costly one. For most conventional loans, a score of 620 is considered “fair.” FHA loans, on the other hand, may approve borrowers with scores as low as 500.
Lenders also vary in how they assess risk. Some will be more flexible, while others stick closely to rigid benchmarks. Either way, improving your credit score can open the door to better rates, more options, and lower monthly payments.
While mortgage rates remain high by historical standards, even small dips like this one can create meaningful opportunity. Across the country, builders are getting creative, inventory is growing, and buyers are jumping back in—especially those who’ve been waiting on the sidelines.
Whether you’re planning to buy, sell, invest, or relocate, timing can make all the difference. Let’s talk about your goals and how to take full advantage of today’s shifting market. As the founder of Whitestone Real Estate, I help people like you navigate the market with clarity—so you can move with purpose, not panic.
Reference: Farberov, S. (2025, April 24). Mortgage Interest Rates Today: Mortgage Rates Inch Down Amid Uncertainty. Realtor.com.
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