Mortgage Rates Drop April 2025

Mortgage rates have dropped significantly in early April 2025, influenced by economic uncertainties and policy changes.

Current Mortgage Rates

As of April 7, 2025:

• 30-year fixed mortgage: 6.39%, down 20 basis points from last week.

• 15-year fixed mortgage: 5.72%, also down by 19 basis points.

• 30-year VA loan: 5.91%.

• 30-year FHA loan: 5.95%.

Refinance rates have similarly decreased:

• 30-year refinance: 6.43%.

• 15-year refinance: 5.79%.

Factors Behind the Drop

1. Economic Uncertainty: The announcement of new tariffs by the U.S. administration has triggered fears of a recession, leading investors to seek safer assets like Treasury bonds. This caused the 10-year Treasury yield to dip below 4%, which typically drives mortgage rates lower.

2. Federal Reserve Policy: While the Fed has held its benchmark interest rates steady in recent months, prior rate cuts in late 2024 have contributed to easing mortgage rates.

Outlook for Mortgage Rates

Experts predict that mortgage rates will continue to hover around the mid-6% range throughout 2025, with potential gradual declines depending on economic conditions. However, significant drops are unlikely unless a deeper recession materializes.

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Produced By: Cyborg Wealth

Written By: Malik Rafaiy