Average mortgage rates have been increasing, with 30-year fixed rates surpassing 6.80% on April 11, 2025, following a report showing inflation slowing to 2.4% year over year. While this news is positive, experts warn that the data does not factor in the impact of recent trade developments and tariff adjustments. With rates on the rise, prospective homebuyers are advised to start considering a mortgage and potentially secure a low rate to protect against future fluctuations.
As of April 11, 2025, the average rate for a 30-year fixed mortgage is 6.80% for purchase and 6.82% for refinancing, up from the previous week. Rates for a 15-year mortgage are at an average of 6.02% for purchase and 6.10% for refinance. The average rate for a 30-year fixed jumbo mortgage is 6.79%.
It is crucial for borrowers to understand that mortgage rates are influenced by various factors, such as inflation, economic conditions, housing market trends, and the Federal Reserve’s interest rate targets. Lenders also consider individual credit scores, down payment amounts, the property in question, and loan terms.
Given the daily rate fluctuations, it is recommended to lock in a mortgage rate when comfortable with the loan terms and overall conditions. Freddie Mac’s weekly report shows a slight decrease in the average 30-year fixed rate, offering an opportunity for potential savings. Understanding the factors affecting mortgage rates can help borrowers secure the best possible rate for their financial circumstances.
When considering a mortgage, it’s important to assess various factors such as your credit score, down payment amount, loan term, and interest rate type. Your credit score, ideally above 670, can influence the rates you’re offered. A higher down payment, especially 20% or more, can lead to lower interest rates and avoid mortgage insurance costs. Different loan terms, from 10 to 30 years, have varying impacts on monthly payments and total interest paid. Interest rates can be fixed or variable, with fixed rates providing stability and variable rates adjusting based on market conditions.
Before applying for a mortgage, you can get prequalified or preapproved. Prequalification offers a rough estimate of what you can borrow based on basic information, while preapproval involves a more thorough financial review by a lender to determine a precise loan amount. Understanding these processes is crucial in your homebuying journey.
Mortgage rates are influenced by the Federal Reserve’s target interest rate, which impacts various financial products. Changes in the Fed rate can affect savings products and loans, including mortgage rates. Following a series of rate increases, the Fed announced rate cuts to address inflation concerns. Staying informed about economic indicators and Fed decisions can help you make informed decisions about your mortgage.
On March 25, the Federal Reserve announced that it would maintain the federal funds target interest rate within the range of 4.25% to 4.50%, marking the second consecutive time the Fed has chosen to hold rates steady. This decision comes after three consecutive rate cuts in September, November, and December, which collectively reduced the Fed rate by a full percentage point. The Fed’s primary focus remains on stabilizing the inflation rate around the target of 2%.
In its post-meeting statement, the Federal Reserve reiterated its commitment to achieving “maximum employment” and managing inflation at 2%. The Fed noted that recent labor market conditions have remained robust, with the unemployment rate stabilizing at a low level. However, the Fed also acknowledged increased uncertainty surrounding the economic outlook.
Looking ahead, the Fed stated that it would carefully evaluate incoming data, the evolving economic landscape, and risk factors in determining the need for any future adjustments to interest rates. The Fed’s latest economic projections suggest that officials anticipate making two quarter-point rate cuts in 2025 due to expected slower growth and higher inflation.
The next Federal Reserve policy meeting is scheduled for May 6–7, 2025. While it is too early to predict the Fed’s decision at this meeting, current market expectations, as measured by the CME FedWatch Tool, indicate a 70% probability that interest rates will remain within the existing range of 4.25% to 4.50%. Economists are closely monitoring inflation and labor market reports to gauge the timing of potential future rate cuts.
Recent data releases have shown positive trends in the job market, with strong job additions and stable unemployment rates. However, concerns persist regarding potential economic impacts of President Trump’s trade policies and tariff decisions. The latest consumer price index indicated a slight easing in inflation, but uncertainties remain regarding future price growth.
Federal Reserve Chair Jerome Powell emphasized the importance of clarity in monetary policy decisions amidst heightened uncertainty. The Fed’s rate-setting panel will announce its decision following the May 7 meeting, with Powell emphasizing the need for a cautious and data-driven approach to policy adjustments.
Changes in Real Estate Practices
On April 23, 2024, a judge approved a $418 million antitrust settlement with the National Association of Realtors. This settlement puts an end to the usual real estate broker commissions, which could be up to 6% of a home’s purchase price. Starting from August 17, 2024, real estate agents must provide potential buyers with a representation agreement before showing them a home. This agreement aims to bring transparency to the buyer-agent relationship, including details about fees and payment methods. Although the settlement is not expected to impact mortgage rates, it allows consumers to negotiate the fees for agent services, ultimately saving them money in the long term.
Other articles in our mortgage and homebuying series cover topics such as how to shop for a mortgage in 2025, popular mortgage loan options like Conventional, FHA, VA, and jumbo loans, refinancing considerations, understanding the impact of rate changes on mortgages, mortgage rate locks, and more. We also offer a variety of personal finance guides to help you manage your finances effectively and achieve your financial goals.
What are Mortgage Lenders?
Mortgage lenders are financial institutions that provide loans to homebuyers. They differ from loan servicers, who handle day-to-day loan operations like processing payments and communicating with borrowers.
Refinancing Your Mortgage
Refinancing involves replacing your existing mortgage with a new one from a different lender, usually with better terms and lower rates. The new lender pays off the old mortgage, and you make payments to the new lender. Learn more about the refinancing process in our comprehensive guide.
Qualifying for Homebuyer Assistance
Even if you have previously owned a home, you may still be eligible for homebuyer assistance programs. The IRS and HUD consider you a first-time homebuyer if neither you nor your spouse has owned a principal residence in the past three years. Explore available programs in our homebuyer assistance guide.
Understanding Adjustable-Rate Mortgages (ARMs)
An adjustable-rate mortgage (ARM) features a variable interest rate. Unlike fixed-rate mortgages, ARMs start with an initial fixed rate for a specified period (e.g., five years) before adjusting to a higher rate periodically. Learn about converting your ARM to a fixed-rate mortgage in our refinancing guide.
Negotiating Mortgage Rates
While it is uncommon to negotiate mortgage rates directly, lenders consider various financial factors when setting rates.
When comparing mortgage lenders, be sure to inquire about alternative ways to reduce costs. Some lenders may offer lower interest rates in exchange for “mortgage points,” which are upfront fees paid to the lender. Each mortgage point typically costs 1% of the loan amount, such as $5,000 on a $500,000 mortgage, and can lower the interest rate by around 0.25%, depending on the lender and loan terms. To discover more strategies for securing the best rate on your next mortgage, consult our comprehensive guide.
Wondering what happens to your mortgage after your passing? Unlike other debts that are typically settled through your estate, mortgages are not usually transferable. Consequently, the property’s title can only be transferred once the mortgage is fully paid off. Learn more about the implications of your mortgage in the event of death.
If you already own a home and need funds for substantial expenses or unforeseen costs, leveraging your home’s equity can be a viable solution. This allows you to access lower rates without refinancing and without jeopardizing your current low-rate mortgage. Good to excellent credit and sufficient home equity are generally required for this option. Find out how to extract equity from your home as interest rates decline.
Please note that the rates mentioned were accurate as of Friday, April 11, 2025, at 6 a.m. Eastern Time. Additionally, the Annual Percentage Yields (APYs) and promotional rates may vary by region and are subject to change. For more information, refer to the following sources:
– Mortgage Industry Insights, Bankrate (Accessed April 11, 2025)
– Primary Mortgage Market Survey, Freddie Mac (Accessed April 11, 2025)
– Employment Situation Summary, U.S. Bureau of Labor and Statistics (Accessed April 7, 2025)
– Consumer Price Index Summary, U.S. Bureau of Labor and Statistics (Accessed March 13, 2025)
– Producer Price Index News Release Summary, U.S. Bureau of Labor and Statistics (Accessed March 14, 2025)
– CME FedWatch Tool, CME Group (Accessed April 11, 2025)
