Today’s Mortgage Rates April 18, 2025: Rates Rise Sharply as Tariffs Fuel Uncertainty

On April 18, 2025, mortgage rates remain relatively favorable compared to last year, despite experiencing weekly fluctuations. The average for 30-year fixed-rate mortgages is around 6.71%, and for 15-year fixed mortgages, it’s approximately 6.01%. Refinance rates are also in a similar range, with the 30-year refinance rate averaging 6.77%.

If we look at the weekly averages, rates have gone up considerably. According to data from Freddie Mac, the average 30-year and 15-year fixed mortgage rates have each increased by 21 basis points this week. The 30-year interest rate is now 6.83%, and the 15-year rate is 6.03%.

While these figures are slightly higher than some of the historic lows in 2020 and 2021, they are significantly lower than rates from last April, making now a potentially advantageous time for homebuyers and those looking to refinance. However, the market remains volatile, influenced by economic factors like tariffs and Federal Reserve policies, which could cause rates to shift in the near future.

Today's Mortgage Rates April 18, 2025: Rates Rise Sharply as Tariffs Fuel Uncertainty

Key Takeaways

• Mortgage rates today are slightly higher than those a year ago but remain below last year’s rates.
• The average 30-year fixed mortgage rate is approximately 6.71%, and the 15-year fixed is about 6.01%.
• Refinance rates are close to the purchase mortgage rates, with the 30-year refinance averaging 6.77%.
• Rates are volatile, influenced by economic uncertainties such as tariffs and inflation.
• Experts suggest that mortgage rates could gradually decline in 2025, but fluctuations are expected.

Mortgage rates fluctuate constantly based on economic indicators, government policies, and market sentiment. Today, the averages reflect a mix of these factors, with a notable trend: despite recent increases, rates remain relatively low compared to historical highs from the early 2000s.

Current Mortgage Rates Breakdown

Loan Type	Rate (%)
30-year fixed	6.71%
20-year fixed	6.47%
15-year fixed	6.01%
5/1 ARM	6.89%
7/1 ARM	6.96%
30-year VA	6.28%
15-year VA	5.80%
5/1 VA	6.29%

Source: Zillow

Refinance Rates Today

Refinance Type	Rate (%)
30-year fixed	6.77%
20-year fixed	6.52%
15-year fixed	6.13%
5/1 ARM	6.89%
7/1 ARM	6.81%
30-year VA	6.39%
15-year VA	6.06%
5/1 VA	6.41%

Source: Zillow

How Do Today's Mortgage Rates Compare to Last Year?

While the rates are slightly higher than at the start of the year, they are still lower than April 2024, when 30-year fixed rates frequently hovered above 7%. This decrease offers a reprieve for those seeking to lock in lower borrowing costs. That said, the market is far from stable, with rates influenced heavily by tariffs, inflation risk, and the Federal Reserve's monetary policy decisions.

According to Freddie Mac, the average 30-year fixed rate was thigher in 2024, but the current downward trend suggests that some relief might be on the horizon if inflationary pressures recede or if the economic outlook improves.

Factors Influencing Mortgage Rates in April 2025

Mortgage rates are affected by multiple interconnected factors, including:

• Inflation: If inflation remains high, lenders are likely to increase rates to compensate for the decreased purchasing power of future payments.
• Federal Reserve Policies: The Fed’s decisions on interest rates directly impact mortgage rates. As of April 2025, Chair Jerome Powell indicated a pause in rate hikes, reflecting caution amid tariff uncertainties.
• Tariffs and International Trade: Tariff disputes can cause economic anxiety, prompting rate volatility. Increased tariffs tend to slow economic growth, which can push rates lower over time.
• Economic Growth and Unemployment: Strong job gains and GDP growth generally lead to higher rates, while economic slowdown or recession prospects tend to lower them.

Market Outlook and Predictions

Leading economic forecasts offer cautious optimism:

• Fannie Mae projects rates will fall slightly to around 6.3% by the end of 2025.
• The National Association of REALTORS® anticipates rates remain around 6.4%, with improvements in home sales and prices.
• Experts agree that massive drops back to historic lows—below 3%—are unlikely this cycle. Instead, rates will probably stabilize in the 6% range.

Is Now a Good Time to Lock in a Mortgage Rate?

Given the current rates and volatility, many experts believe locking in a mortgage now could be prudent, especially for those who want predictable payments. However, if rates decline later, some lenders offer float-down options, allowing borrowers to secure a lower rate before closing. This flexibility can provide some protection against market fluctuations.

For those considering refinancing, current rates are competitive enough to warrant a review. If your existing mortgage has a significantly higher rate, refinancing at today's levels could lead to noticeable savings.

The Impact on Homebuyers and Refinance Borrowers

The slight improvement in mortgage rates offers benefits for both buyers and homeowners:

• Homebuyers may experience slightly lower monthly payments, reducing overall borrowing costs.
• Refinancers have the opportunity to lock in rates that, while higher than in the ultra-low period of 2020-2021, are still more manageable compared to last year's peaks.

However, affordability continues to be a challenge, especially with rising home prices. The moderating appreciation rate and increased inventory can help balance the market and provide more options.

Summary

Today’s mortgage and refinance rates of around 6.7% for the 30-year fixed and 6.0% for the 15-year fixed still present a solid environment for borrowing, especially considering they are lower than last year. Market volatility persists, but the current trend indicates a cautious approach with an expectation of slight declines over 2025. Borrowers should stay attentive to market signals and consider locking their rates if they find favorable terms, as rates could fluctuate with economic developments.

FAQs About Today's Mortgage Rates – April 18, 2025

1. Are mortgage rates expected to rise or fall in 2025?
Most experts forecast slight declines in mortgage rates throughout 2025, with some predictions favoring a gradual decrease to around 6.2%–6.3% by year's end. However, market volatility caused by tariffs, inflation, and Fed policies means rates could fluctuate and stay volatile for some time.

2. Should I lock in a mortgage rate now or wait for lower rates?
If you find a rate that fits your budget and you’re comfortable with the terms, locking it in now could be wise since rates can fluctuate unpredictably. For those expecting rates to drop significantly, some lenders offer float-down options that let you lock a rate now but still benefit from potential future decreases before closing.

3. How do refinance rates compare to purchase mortgage rates today?
Currently, refinance rates are quite similar to purchase mortgage rates, with the 30-year fixed refinance averaging 6.77%. Refinance rates tend to be slightly higher than purchase rates but are still competitive. Refinancing can be advantageous if you want to lower your payments or cash out equity.

4. Is it better to choose a fixed-rate or adjustable-rate mortgage now?
Fixed-rate mortgages offer stability, locking in a rate for the entire loan term, which is ideal if you plan to stay in your home long-term. Adjustable-rate mortgages (ARMs) often start with lower initial rates but change periodically after a fixed period. Given the current volatility, many borrowers prefer fixed rates for predictability, especially if they intend to keep their home for many years.

5. How does current home price and inventory affect mortgage rates and borrowing?
Increased home prices and limited inventory have made affordability more challenging. However, with moderating home price appreciation and slightly lower mortgage rates compared to last year, buyers may find more opportunities. The overall market environment encourages cautious optimism, but affordability remains a key factor.