Sun Apr 20 08:40:00 UTC 2025: **Mortgage Rates Surge, Dampening Spring Homebuying Season**
**New York, NY (CNN) –** The spring homebuying season has received a setback as mortgage rates saw their largest weekly increase in nearly a year, jumping to 6.83% for a 30-year fixed mortgage. This surge, attributed to increased volatility in the stock market stemming from escalating trade tensions between the US and China, follows a period of declining rates that had initially spurred buyer interest.
The increase is directly linked to a spike in the benchmark US 10-year Treasury yield, which reached 4.5% last Wednesday before slightly retreating. While the current rate remains below the 7.1% seen this time last year, the rapid increase has dampened what was initially a strong start to the homebuying season.
Freddie Mac’s chief economist, Sam Khater, noted that despite the rate hike, purchase application demand is currently 13% higher than last year at this time, suggesting a still-robust, albeit potentially impacted, market. However, the sudden jump in interest rates may cool some buyer enthusiasm. The ongoing uncertainty surrounding the trade war continues to cast a shadow over the housing market’s outlook.
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