Mortgage rates move higher on positive economic news
Mortgage rates rose slightly this week as easing trade tensions between the US and China gave Wall Street more confidence that the economy could avoid entering a recession.
The average 30-year mortgage rate jumped to 6.81% this week through Wednesday, from 6.76% a week earlier, according to Freddie Mac data. Average 15-year mortgage rates were 5.92%, from 5.89%.
10-year Treasury yields, which mortgage rates closely track, moved higher in recent days after positive economic news lessened the odds of a Fed rate cut in the coming months. On Monday, the US and China reached a deal to temporarily slash the steep tariffs they had imposed on each other, a move many economists expect will help stave off a recession this year.
'It's a catch-22 for homebuyers,' Chen Zhao, Redfin's head of economics research, said in a statement. 'Mortgage rates are unlikely to fall unless all of the new tariffs are eliminated, or if the country falls into a fairly severe recession — which would cut housing budgets for many Americans."
Read more: Mortgage and refinance interest rates today
Fading recession fears, coupled with a Consumer Price Index report that showed inflation cooled in April but is still running above the Fed's target 2% range, gave traders confidence that the central bank will hold benchmark interest rates steady in the months ahead.
Treasury yields and mortgage rates aren't directly affected by Fed policy but do move based on expectations about the future direction of interest rates. Traders don't expect the Fed to cut interest rates until September, according to CME FedWatch.
Read more: When will mortgage rates go down? What experts say.
Although rates remain elevated, some buyers are proceeding with purchases. Mortgage applications to purchase a new home rose 2% through Friday compared with a week earlier, according to the Mortgage Bankers Association. Refinancing applications slipped 0.4% in the same time period.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
Sign up for the Mind Your Money newsletter
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Nucleus Genomics Launches Nucleus Embryo, Genetic Optimization Software Alongside Partnership with Genomic Prediction
Parents pursuing IVF now have a new level of choice to empower their family planning NEW YORK, June 4, 2025 /PRNewswire/ -- With U.S. birthrates plummeting and IVF on the rise, Nucleus Genomics today launched Nucleus Embryo, the first genetic optimization software that lets parents see and understand a complete genetic profile to select an embryo. "Before there's a heartbeat, there's DNA," said Kian Sadeghi, founder and CEO of Nucleus. "One file containing DNA and genetic markers can tell you more about your baby's future than any other test a doctor could possibly run at this stage. Most clinics stop at whether an embryo will develop. For many parents, that's not enough. Patients have long asked for more transparency from clinics, and Nucleus Embryo is an important step toward complete data ownership for parents planning their families." The software enables parents to analyze and compare up to 20 embryos across over 900 hereditary conditions and 40 additional analyses beyond basic viability, spanning cancers, chronic conditions, appearance, cognitive ability, mental health, and more. To widen access to the software, Nucleus will partner with Genomic Prediction, the first company to offer genome-wide screening on embryos. The partnership sets a new standard in genetic medicine, continuing Genomic Prediction's decade-long history of giving hopeful parents the best possible chance of implanting healthy embryos. The company's analyses focus on hereditary conditions, acting as the first line of defense against chronic and rare diseases. "As an organization, we are committed to supporting patients' rights to their DNA and any information that can aid in their family-building journey," said Kelly Ketterson, CEO of Genomic Prediction. "We have a legacy of innovation aimed at providing patients with access to the best scientific resources. Our partnership with Nucleus opens access to information our patients have requested and allows us to uphold our commitment to this legacy." Nucleus' partnership with Genomic Prediction reflects a growing shift in how parents think about genetics as a tool to give children the best possible start in life. A wide-ranging study of Americans found the majority accepted the use of genetic technology to choose embryos based on health and personality traits. Four in 10 parents would use genetic optimization as another tool to understand their future child's cognitive abilities. Most women undergo three to six IVF cycles before successfully having a baby, with each cycle costing up to $25,000. Many embryos are unviable within days of being fertilized, leaving parents with few to choose from. Facing high stakes, clinicians often recommend genetic testing to optimize a couple's chances of a healthy pregnancy. But these tests typically stop at a select number of hereditary conditions and chromosome count. Now, advanced genetic analysis from Nucleus gives parents a new window into the health and well-being of their future child. Nucleus Embryo provides a comprehensive genetic profile for each embryo, encompassing hereditary genetic diseases, like cystic fibrosis and hemochromatosis, alongside genetic measures of cognitive ability, mental health, and risk for chronic diseases. Wide access to genetic insights for embryos can also help extend lifespan from the earliest stages of life. While more than half of all deaths annually in the U.S. are attributed to chronic, age-related conditions — such as Alzheimer's disease, diabetes, cancer, and heart disease — research shows embryonic selection can materially help reduce disease risk for these conditions. "We celebrate health optimization and the pursuit of longevity in every other part of life via our focus on training, supplements, and sleep," Sadeghi said. "We all know health isn't just the absence of disease. It's the ability to understand our bodies and genetic makeup to reach our full potential. Now we can apply this principle to life's inception." About Nucleus Genomics Nucleus builds software for generational health. Inspired by the loss of his cousin who died of a rare — yet preventable — genetic disease, Nucleus founder and Thiel Fellow Kian Sadeghi left an Ivy League university to build a product that could have saved her life. Our advanced DNA health test and analysis takes the guesswork out of your health, whether it's perfecting your protocols, knowing your risk for cancer, or planning for a healthy family. Follow us on social media @nucleusgenomics. About Genomic Prediction Genomic Prediction, Inc. is the frontrunner in advanced embryo screening. Our proprietary LifeView platform is state-of-the-art technology that assesses embryos for genetic health aimed at improved IVF outcomes. The LifeView Embryo Health Score Test (EHS) offers insight into the likelihood of developing conditions driven by multiple genes. It tests for significant health issues, including cardiovascular disease, diabetes mellitus, certain cancers, and mental health conditions. The EHS results are derived from the same embryo sample used in the following PGT tests: PGT-A: Identifies chromosome abnormalities in embryos. PGT-A+: Pinpoints the origin (paternal, maternal, or embryonic) of chromosome abnormalities. PGT-M: Decreases the chances of passing on monogenic (single-gene) conditions. PGT-SR: Detects chromosome abnormalities and structural imbalances, providing clarity between normal and balanced chromosomes. View original content to download multimedia: SOURCE Nucleus
Yahoo
2 hours ago
- Yahoo
Diplomatic win for UK hosting US-China trade talks
Sky News understands that the Trump administration approached the UK government to ask if it would host round two of the US-China trade talks. This is a useful 'diplo-win' for the UK. The first round was held in Geneva last month. News of that happening came as a surprise. The Chinese and the Americans were in the midst of a Trump-instigated trade war. President Trump was en route to Saudi Arabia and suddenly we got word of talks in Switzerland. They went surprisingly well. US treasury secretary Scott Bessent and his Chinese counterpart He Lifeng, met face-to-face and agreed to suspend most tariffs for 90 days. But two weeks later, the Trump administration accused Beijing of breaking the agreements reached in Geneva. Beijing threw the blame back at Washington. On Wednesday, Donald Trump and Xi Jinping spoke by phone. The Chinese claimed this call was at the Americans' request. Either way, the consequence was that the talks were back on track. "I just concluded a very good phone call with President Xi of China, discussing some of the intricacies of our recently made, and agreed to, trade deal," President Trump said this week. From that call came the impetus for a second round of talks. A venue was needed. In stepped the UK at short notice. Beyond being geographically convenient, UK government sources suggest that Britain is geopolitically in the right place right now to act as this bridge and facilitator. The UK-China relationship is in the process of a "reset". Other locations, like Brussels or other EU capitals, would have been less workable. Crucially too, for the UK, this is also potentially advantageous as it seeks to get its own UK-US trade agreement, to eliminate or massively reduce tariffs, over the line. Talks on reaching the "implementation phase" have been near-continuous since the announcement last month, but having the American principals in London is a plus. Sideline talks are possible, but even the presence of the US team in the UK is helpful. Read more from Sky News:Man wrongly deported from US to El Salvador has been returned to face criminal chargesMore than 40 'narco-boat' drug smugglers arrested in major police sting For all the chaos that President Trump is causing with his tariffs, he has instigated face-to-face conversations as he seeks resets. Key players are sitting down around tables - yes, to untangle the trade knots which Trump tied, but this whole episode has pulled foes together around the same table; it has forced relationships and maybe mutual understanding. That's useful. And for this next round, between superpowers, the UK is the host. Also useful.
CNBC
3 hours ago
- CNBC
Japan trade negotiator Akazawa says he made progress in U.S. tariff talks
Japan had made some progress in a fifth round of trade talks with U.S. officials aimed at ending tariffs that are hurting Japan's economy, Tokyo's chief tariff negotiator said. "Tariffs have already been imposed on autos, auto parts, steel and aluminum, and some of them have doubled to 50% along with 10% general tariff. These are causing daily losses to Japan's economy," Ryosei Akazawa, said in Washington on Friday after talks with officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Akazawa declined to say what progress they had made. The latest round of talks may be the last in-person meeting between senior Japanese and U.S. officials before the Group of Seven (G7) leaders summit that starts on June 15, where U.S. President Donald Trump is expected to meet Japanese Prime Minister Shigeru Ishiba. Japan also faces a 24% tariff rate starting in July unless it can negotiate a deal with Washington. "We want an agreement as soon as possible. The G7 summit is on our radar, and if our leaders meet, we want to show what progress has been made," Akazawa said. "Still we must balance urgency with a need to guard our national interests," he added. Last month Japan's trade negotiator said U.S. defence equipment purchases, shipbuilding technology collaboration, a revision of automobile import standards and an increase in agricultural imports could be bargaining chips in tariff talks. In a bid to reach an agreement with the U.S., Japan is also proposing a mechanism to reduce the auto tariff rate based on how much countries contribute to the U.S. auto industry, the Asahi newspaper reported on Friday. Akazawa said Japan's position has not changed and that the tariffs are not acceptable.
