Mortgage Rates Rise Above 6.7% After US-China Tariff Truce

Mortgage rates have inched higher recently, with the average 30-year fixed mortgage rate rising to around 6.76% to 6.88%, influenced by a recent 90-day U.S.–China tariff truce that shifted investor sentiment toward riskier assets and softened demand for bonds. This shift has caused bond yields to rise, which in turn has pushed mortgage rates upward despite the tariff pause being seen as a positive economic development. The Federal Reserve's hold on interest rates through much of 2025, amid ongoing inflation and fiscal policy uncertainty, is expected to keep mortgage rates elevated between 6.5% and 7% for the foreseeable future. Analysts note that while the tariff truce eases some economic concerns, inflation worries and global trade dynamics continue to create uncertainty, limiting prospects for significant rate declines. Homebuyers face challenges from these persistent high rates, alongside high home prices and limited inventory, making the current market environment difficult. Experts advise prospective borrowers to shop around for the best mortgage offers as rates remain volatile and influenced by both domestic policy and international trade developments.