Rates are climbing again, and buyers are feeling it.
As of last week, the average 30-year fixed mortgage rate reached 6.75 percent, holding steady for the second week in a row, according to Freddie Mac. That is up slightly from 6.72 percent the week before and just under where it was this time last year at 6.77 percent. The 15-year rate also increased to 5.92 percent, impacting refinance scenarios.
What is driving it
Inflation and economic uncertainty are the main causes. Recent data shows inflation rose to 2.7 percent, partly due to tariff policies. This is making it harder for the Federal Reserve to justify cutting interest rates. At the same time, political discussions about the Federal Reserve’s independence have made bond markets nervous, pushing 10-year Treasury yields higher. They are currently sitting around 4.45 percent.
Since mortgage rates tend to follow those yields, borrowers are now seeing higher costs.
Why this matters
Higher rates mean higher monthly payments, and that reduces what buyers can afford. Some buyers are being priced out completely. Mortgage applications fell 10 percent last week, and home sales remain sluggish. Many buyers are choosing to wait.
What you can do
- Encourage rate comparisons. Some lenders are still offering rates up to 0.57 percent lower than the national average. On a 340,000 dollar loan, that could save you over 1,500 dollars per year.
- Explore Private Money and flexible loan programs for clients who do not qualify through traditional options.
- Stay informed. Most forecasts expect mortgage rates to stay between 6 and 7 percent through the end of the year.
Bottom line
There may not be much movement in rates soon, but that does not mean buyers are out of options. This is when advice, resources, and solutions matter most.
Pacific Direct Mortgage is a Santa Rosa-based private money direct lender, providing fast and flexible Hard Money loans for single family, multi family, and investment properties throughout California and Sonoma County.
We partner with brokers, buyers, and lenders to offer creative Private Money solutions when traditional financing falls short. Whether you are facing a tight timeline, a unique borrower, or a challenging property, we are here to help you get it done.
