US Mortgage Rates Hit 2025 High Amid Uncertainty

US mortgage rates have recently climbed to around 6.90% for the 30-year fixed rate, the highest since mid-February 2025, amid ongoing economic uncertainty and market volatility. Unlike in the UK, where lenders have lowered fixed rates below 4% in response to President Trump’s global tariffs, US rates are expected to remain between 6.5% and 7% throughout the year. Elevated borrowing costs and a limited supply of homes continue to pose challenges for buyers, and refinancing activity is subdued unless rates drop below 6%, which experts believe is unlikely in 2025. The Federal Reserve remains cautious about rate cuts due to persistent inflation and concerns over new trade policies. If the economy weakens further, the Fed may consider resuming rate reductions later in the year, which could ease mortgage rates. Prospective buyers and refinancers are advised to monitor the market and be prepared to act if conditions improve.