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**Mortgage Rates Edge Up as Easing Trade Tensions Boost Economic Confidence**

**[City, State] –** Mortgage rates saw a slight increase this week, driven by growing optimism about the U.S. economy following positive developments in trade relations with China. According to Freddie Mac data released Wednesday, the average 30-year fixed-rate mortgage rose to 6.81%, up from 6.76% the previous week. The 15-year fixed-rate mortgage also saw a similar bump, reaching 5.92% from 5.89%.

The uptick is attributed to rising 10-year Treasury yields, which mortgage rates closely follow. These yields gained ground after the U.S. and China reached an agreement to temporarily reduce tariffs, a move that has eased concerns about a potential recession.

“It’s a catch-22 for homebuyers,” said Chen Zhao, Redfin’s head of economics research. “Mortgage rates are unlikely to fall unless all of the new tariffs are eliminated, or if the country falls into a fairly severe recession.”

Cooling inflation, as indicated by the recent Consumer Price Index, also contributed to the market’s expectation that the Federal Reserve will maintain its current interest rate policy in the near term. While not directly influenced by Fed policy, Treasury yields and mortgage rates react to market expectations regarding future interest rate movements. Currently, traders predict the Fed won’t cut interest rates until September.

Despite the elevated rates, there are signs that some buyers are still active in the market. The Mortgage Bankers Association reported a 2% increase in mortgage applications for new home purchases compared to the previous week. However, refinance applications dipped slightly by 0.4% during the same period.

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