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CNET
4 days ago
- Business
- CNET
Mortgage Rate Predictions for the Week of June 2-8, 2025
Mortgage rates can change daily and even hourly. Tharon Green/CNET Mortgage rates aren't budging, and neither is the housing market, as investors continue to weigh the unknowns of President Trump's economic policies. According to Bankrate, the average rate for a 30-year fixed mortgage crawled past 7% last week, up from around 6.75% a month ago. However, despite an increase in housing inventory, pending home sales plummeted by 6.3% last month, according to the National Association of Realtors. "At this critical stage of the housing market, it is all about mortgage rates," said Lawrence Yun, NAR chief economist, in a statement last Thursday. "Lower mortgage rates are essential to bring homebuyers back into the housing market." Most analysts predict that a meaningful drop in mortgage rates isn't on the horizon. We're likely to see more economic volatility over the coming weeks and months. Overall, prospective homebuyers should expect rates to remain near 6.8% for the remainder of 2025, according to Redfin's forecast. What's impacting mortgage rates right now? Though a temporary reprieve from the most aggressive tariffs has eased some stagflation fears, economists caution that tariff-driven price bumps could derail the Federal Reserve's interest rate cuts. "As long as the tariffs remain high, there will be a worry about persistently high inflation that the Fed cannot ignore," said Chen Zhao, Redfin's head of economic research. Fewer interest rate cuts combined with the administration's budget bill, which is expected to increase government debt deficits significantly, are likely to keep upward pressure on longer-term bond yields, directly impacting the mortgage market. Since the 30-year mortgage rate closely tracks the 10-year Treasury yield, rising bond yields translate to higher rates for home loans. Could the Fed still cut interest rates? While the Fed's actions don't immediately dictate mortgage rates, they indirectly influence how much it costs to borrow money across the economy. Following signs of cooler inflation, the Fed cut interest rates three times in 2024, making borrowing costs slightly less restrictive. However, the Fed has been in a holding pattern since then, waiting to see the long-term implications of the president's policies before it lowers rates again. Economists now predict the Fed will delay interest rate cuts until at least September. "There's way too much uncertainty as to what becomes of the tariffs, inflation and the broader economy," said Keith Gumbinger, vice president at "There may be no cut at all if conditions don't support it." While recent economic data shows some decline in official inflation figures, price growth is expected to go up. As domestic companies pass expensive duties onto consumers in the form of higher retail prices, inflation is likely to escalate again. Gumbinger said mortgage rates have been holding somewhat steady in a high range because there is no clear path ahead for the economy, inflation or Fed policy. Could a recession result in lower mortgage rates? Mortgage rates are likely to stay above 6.5%, and any dips will probably be small and temporary. Rates will move based on incoming economic data and how investors respond to policy shifts. "The situation could change quickly if there are new announcements out of the Trump administration or if global economic conditions weaken," said Lisa Sturtevant, chief economist at Bright MLS. For example, if the unemployment rate climbs significantly due to layoffs, the Fed might consider easing policy to avert a deeper downturn. A recession isn't a foregone conclusion, but it's still a possibility: Jobless claims are on the rise, consumer spending has slowed and economic growth declined in the first quarter of 2025. The prospect of a potential economic downturn is weighing heavy on consumer confidence. Even if the by-product of an economy in freefall is lower mortgage interest rates, buyers who are worried about job security and affording the high cost of living will be hesitant to take on mortgage debt. "When people are anxious, they are less likely to make big decisions, like buying and selling a home," Sturtevant said. What do housing market experts recommend? In today's unaffordable housing market, prospective buyers have multiple reasons to postpone plans for homeownership. High mortgage rates and growing unease about economic instability have kept overall activity low. "Given so many unknowns, it is a good time for caution. But if the market presents a potential homebuyer with a house they love and can afford, there's little reason not to take advantage of the opportunity," said Gumbinger. Homeownership offers the promise of long-term financial stability and generational wealth-building through equity. If you're waiting for mortgage rates to come down before buying, keep in mind that the large-scale economic issues affecting the housing market are beyond your control. Instead, you can focus on the ways to bring down your individual mortgage rate, said Hannah Jones, senior research analyst at For example, shopping around for lenders can save borrowers up to 1.5% on their mortgage rate. Since each lender offers different rates and terms, you can always negotiate a better rate. If you're financially ready to buy, you can always refinance your mortgage down the road. Jones said other strategies for lowering your mortgage rate include improving your credit score, making a larger down payment or choosing a more affordable home. Experts recommend making a homebuying budget and sticking to it. Creating a realistic financial plan can help you decide if you can handle the costs of homeownership and provide you with some guidance for how large your mortgage should be. Watch this: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 02:31 More on today's housing market
Yahoo
16-05-2025
- Business
- Yahoo
‘Doubt and hesitation' are ripping through the housing market: ‘People are starting their home search, then backing out'
Painfully high home prices and mortgage rates have scared off some potential homebuyers, according to Redfin. Despite an easing of China tariffs, mortgage rates are being pushed higher. High prices have created a lopsided housing market, with homes for sale at a five-year-high, but few buyers. As elevated home prices and mortgage rates continue to weigh on the housing market, would-be home buyers are pulling out, according to a Redfin report. Stubbornly high home prices are keeping monthly housing payments uncomfortably high: The median payment this week was a hefty $2,860, just $6 less than the record high set last week. Pending home sales across the U.S. slipped 3.4% compared to this time last year during a four-week period ending May 11. That's the lowest level on record during this timeframe, outside of 2020, according to Redfin. The median asking price rose 6.5% to $429,850 from a year ago, while the median sale price grew 1.8% to $390,998. Despite President Donald Trump's tariff reductions on Beijing, which have rejuvenated the stock market and mitigated concerns of a recession, mortgage rates are still pushing higher, Redfin head of economic research Chen Zhao said. Following the tariff slash, the average 30-year mortgage rate edged upward to 6.81% from 6.76% this week, according to Freddie Mac. Additionally, the average 15-year mortgage jumped from 5.89% to 5.92%. 'It's a catch-22 for homebuyers,' Redfin head of economic research Chen Zhao said. '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.' Real estate agents in North Carolina, Ohio, Oregon, and Texas said that buyers are holding back on pursuing a home because of a potential economic downturn. 'There's a lot of doubt and hesitation among house hunters,' Portland real estate agent Meme Loggins said in the report. 'People are starting their home search, then backing out because they either talked to their lender and realized how high their monthly payments would be, or they're feeling jittery about tariffs, a potential recession, and/or the possibility of getting laid off.' Amid the economic uncertainty, those who are actually closing on homes are searching for more affordable housing. 'One smart strategy I'm seeing among the people who are buying right now: They're looking for condos or small houses to lower their monthly payments to simplify their life,' Loggins said. 'And a smart strategy for sellers is offering mortgage-rate buydowns to pique buyers' interest.' A tapered demand for housing is coupled with an above-average supply for this time of year. New listings have jumped 5.1% since this time last year and homes for sale have skyrocketed 14.3% to a five-year high. In April, the lopsided supply and demand favored buyers as nearly 44% of sellers offered concessions to buyers, according to a different Redfin report. This story was originally featured on
Yahoo
15-05-2025
- Business
- Yahoo
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
Yahoo
15-05-2025
- Business
- Yahoo
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 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
15-05-2025
- Business
- Business Wire
Redfin Reports Economic Jitters, High Costs Stifle Spring Home Sales
SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — Pending U.S. home sales fell 3.4% year over year during the four weeks ending May 11 to their lowest level on record for this time of year aside from 2020, according to a new report from Redfin ( the technology-powered real estate brokerage. Would-be homebuyers are backing off for two main reasons. One, rising home-sale prices and elevated mortgage rates pushed this week's median monthly housing payment to $2,860, just $6 shy of the record high set the week before. Two, Redfin agents in many parts of the country, including Oregon, North Carolina, Texas and Ohio, report that some buyers are backing off because they're nervous about the future of the U.S. economy. There's also a holiday effect; Easter fell into this year's four-week period, but not the comparable period in 2024. 'There's a lot of doubt and hesitation among house hunters,' said Meme Loggins, a Redfin Premier agent in Portland, OR. 'People are starting their home search, then backing out because they either talked to their lender and realized how high their monthly payments would be, or they're feeling jittery about tariffs, a potential recession, and/or the possibility of getting laid off. One smart strategy I'm seeing among the people who are buying right now: They're looking for condos or small houses to lower their monthly payments and simplify their lives. And a smart strategy for sellers is offering mortgage-rate buydowns to pique buyers' interest.' Chen Zhao, Redfin's head of economics research, said that while this week's news about the U.S. slashing tariffs on China is boosting the stock market and reducing the risk of a recession, it's also pushing mortgage rates up. 'It's a catch-22 for homebuyers,' Zhao said. '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.' On the selling side, new listings are up 5.1% year over year, and the total number of homes for sale is up 14.3%. Redfin agents say there's more housing supply than usual at this time of year because many listings are sitting on the market. For buyers, the bright side of rising supply and limited demand is that nearly half of home sellers are giving concessions. Agents advise buyers to try to negotiate sale prices down or ask for money for repairs or closing costs. For Redfin economists' takes on the housing market, please visit Redfin's ' From Our Economists ' page. Leading indicators Key housing-market data To view the full report, including charts, please visit: About Redfin Redfin ( is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people. Redfin's subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®. For more information or to contact a local Redfin real estate agent, visit To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@ To view Redfin's press center, click here.
