M
ortgage rates have stabilized, but the underlying dynamics are complex. As of April 3, 2025, the average 30-year fixed-rate mortgage in the US stands at 6.64%, a slight dip from last week's 6.65%. This relative calm belies the turmoil brewing beneath the surface.

    According to Sam Khater, Chief Economist at Freddie Mac, "The past month has seen minor fluctuations in the 30-year fixed-rate, but we're witnessing a surge in purchase application activity - the fastest growth rate since late last year." This uptick is a welcome respite from the uncertainty that's been plaguing the market.

    Freddie Mac Mortgage Highlights:

    * The 30-year FRM averaged 6.64% as of April 3, down from 6.82% a year ago.

    * The 15-year FRM averaged 5.82%, a decrease from 6.06% at this time last year.

    Tariff tensions have sent shockwaves through the market, with President Donald Trump's proposed 10% tariff on imports unsettling investors and sparking concerns about economic stability. When tariffs are introduced, they can disrupt supply chains, increase costs, and fuel fears of a slowdown - factors that drive investors toward safer assets like U.S. Treasury bonds.

    This shift has pushed down the yield on the 10-year Treasury note, a benchmark closely tied to mortgage rates, resulting in the recent decline in borrowing costs. However, there's a dual concern: tariffs could also trigger a rise in inflation, offsetting the benefits of lower rates and complicating affordability for buyers and long-term planning for investors.