Mortgage rates are driven by bonds and the bond market hoped to see more proof of shift toward peace during the 2-day Trump/Xi meeting in China. As quickly as Trump got back on the aircraft to head home, bonds began tanking (i.e. leaping to higher yields).
When bond yields increase, home mortgage rates follow, and today is no exception. The typical top-tier 30yr set rate is up to 6.62% today, right in line with levels seen on March 26th and 27th and the highest given that August 1st.
If there’s a silver lining, it’s that mortgage rates aren’t higher. Much of the credit goes to the ramp in purchases of mortgage-backed debt by Fannie and Freddie. The more home mortgage financial obligation they purchase, the better it is for mortgage rates relative to standards like U.S. Treasuries.
For example, Treasuries are now well above the levels seen in late March and in line with levels from the first half of 2025 when home mortgage rates were 7% instead of 6.62%.