Mortgage Rates Surge to 6.83%, Impacts Housing Market

Mortgage rates rose sharply this week, with the 30-year fixed rate climbing to 6.83%, the highest since February, driven by economic uncertainty, volatile bond markets, and ongoing tariff concerns. The spike has been attributed to reduced demand for U.S. Treasuries and fears of persistent inflation, as well as tariffs impacting global supply chains critical to home construction. Despite the increase, rates remain below 7% for the thirteenth consecutive week, and homebuying demand is notably stronger than last year. However, higher borrowing costs and declining consumer confidence are slowing the housing market, with major homebuilders like D.R. Horton reporting fewer sales and a downturn in new housing starts. Experts note that while current rates are near historical averages, affordability and economic uncertainty continue to weigh on both buyers and the broader housing market. Analysts suggest that if rates fall in the future, current buyers may be able to refinance, but for now, vigilance is advised amid ongoing volatility.