Mortgage Rates Hold Steady -- But Is a Rate Cut Coming?

Khac Phu Nguyen

Thu, May 8, 2025, 2:39 PM 1 min read

Mortgage rates stayed stuck astatine 6.76% this week arsenic Treasury yields held firm, according to Freddie Mac (FMCC). The 15-year complaint dipped somewhat to 5.89% from 5.92%, a insignificant displacement that came arsenic the Federal Reserve kept involvement rates unchanged. Kara Ng, elder economist astatine Zillow Home Loans, pointed to the dependable occupation marketplace arsenic a buffer, saying the Fed present has the acquisition of clip to gauge however existent policies interaction the broader system earlier making immoderate moves.

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Despite unit from President Trump to slash rates, the Fed isn't biting. While owe rates aren't straight acceptable by the cardinal bank, they're heavy influenced by complaint expectations and close now, traders are scaling backmost connected complaint chopped bets. The CME FedWatch instrumentality present sees conscionable a 20.4% accidental of a chopped successful June oregon July, signaling that markets are holding steady, astatine slightest for now.

Meanwhile, owe applications surged 11% past week, fueled by a leap successful some acquisition and refi applications, per the Mortgage Bankers Association. Buyers and refinancers are moving accelerated to fastener successful rates earlier the adjacent Fed decision, anticipating that immoderate unexpected complaint shifts could rattle the calm.

This nonfiction archetypal appeared connected GuruFocus.