Mortgage Rates Plummet to 2025 Low
Mortgage rates fell again this week to a new low in 2025, with the average rate on a 30-year loan dropping to 6.63%, according to Freddie Mac data. This latest drop was driven by President Donald Trump's sweeping tariffs on goods imported from Canada, Mexico, and China, as well as downbeat economic data that sparked a selloff and raised new fears about a possible recession in the US. Despite the economic uncertainty, lower rates over the last week spurred a spike in mortgage applications for home purchases and refinancings.
- The underlying causes of these declining mortgage rates may be masking deeper issues with consumer spending and confidence, which could have far-reaching implications for the broader economy.
- How will the impact of tariffs on inflationary pressures and economic growth be reconciled with the Federal Reserve's efforts to control interest rates?