Mortgage rates saw a modest increase this week as markets experienced fluctuations

Mortgage Rates Edge Up Amid International Tensions

This week saw a modest increase in mortgage rates, influenced by rising geopolitical strains between the United States and Europe.

According to Freddie Mac, the average rate for a 30-year fixed mortgage climbed to 6.09% as of Wednesday, up from 6.06% the previous week. Meanwhile, 15-year fixed mortgage rates also rose, reaching 5.44% compared to last week's 5.38%.

Earlier in the week, markets were rattled by President Trump’s new tariff threats related to Greenland, causing mortgage rates to jump from near 6%—their lowest since 2022—to approximately 6.2%.

Anthony Smith, a senior economist at Realtor.com, explained, “Renewed uncertainty over trade policy led to selling in Treasuries, which pushed long-term yields and mortgage rates higher.”

By midweek, President Trump had reversed his stance on the tariffs, announcing a preliminary agreement with NATO. As a result, the 10-year Treasury yield, which closely influences mortgage rates, declined—potentially signaling lower rates in the near future.

Subscribe to the Mind Your Money Weekly Newsletter

Stay informed with the latest financial insights and tips delivered straight to your inbox each week.

By subscribing, you agree to Yahoo's Terms and Privacy Policy.

Market Volatility Reflected in Mortgage Rate Data

Daily updates from lenders highlighted the week’s market turbulence. By Thursday afternoon, Mortgage News Daily reported the average 30-year mortgage rate at 6.19%, nearly unchanged since Tuesday and similar to levels before President Trump’s recent $200 billion bond-buying initiative aimed at reducing rates.

During periods of market instability, Kyle McCort, a sales manager and mortgage loan originator at NFM Lending in Ohio, advises clients to remain calm and concentrate on factors within their control, rather than reacting to every rate change.

“Just because the world is in chaos doesn’t mean you are in chaos,” McCort noted.

About the Author

Claire Boston is a Senior Reporter at Yahoo Finance, specializing in housing, mortgages, and home insurance topics.