Despite recent upward movement, some analysts highlight a broader pattern of consistency.
“Mortgage rates edged upward after the Fed hinted that it won’t be in a hurry to cut interest rates this summer,” Holden Lewis, home and mortgage expert at NerdWallet. “Zooming out, mortgage rates have been remarkably steady for the last month. Sure, rates are higher than borrowers prefer, but buyers are reassured by stability.”
Rate volatility eases
After a turbulent start to April, driven by market reactions to US tariff announcements, rates stabilized toward the end of the month. Data from Optimal Blue shows the benchmark OBMMI 30-year conforming fixed rate fluctuated between 6.48% and 6.98% in the first 10 days of April before settling at 6.7% by month’s end, about 10 basis points above where it began.
“Last month’s report showed early signs of spring homebuyer activity, and April confirms the season is underway with a solid increase in purchase locks,” said Brennan O’Connell, director of data solutions at Optimal Blue. “We also saw a shift toward FHA loans, often used by first-time or credit-challenged buyers, and away from non-conforming products, possibly reflecting investor caution in response to broader economic uncertainty.”
FHA loan share climbed to 20.2% in April, up 50 basis points from March. Conversely, non-agency lending dropped by 46 basis points to 16.4%. The conforming loan share dipped slightly to 51%, and VA share declined to 11.8%. USDA volume remained unchanged at 0.6%.