US 30-year mortgage rate jumped last week to 2-month high

(Reuters) - The interest rate for the most popular U.S. home loan jumped to 6.81% last week, its highest level in two months, following a turbulent week for financial markets as President Donald Trump pressed on with a deepening trade war.

The average contract rate on a 30-year fixed-rate mortgage rose 20 basis points in the week ended April 11, the Mortgage Bankers Association said on Wednesday. That was the biggest one-week increase in the rate since October. Mortgage applications dropped.

Mortgage rates closely track the 10-year Treasury note yield, which had its biggest weekly rise last week since 2001.

The increase in yields reflected a drop in investor appetite for U.S. government debt, and came as Trump suspended some of his newly imposed tariffs even as he boosted levies on China, the biggest U.S. trading partner.

Homebuyers are increasingly opting for adjustable rate mortgages which allow them to borrow at a lower initial rate than with a more conventional 30-year fixed rate, the MBA said. Adjustable rate mortgages accounted for about 9.6% of all mortgage applications last week, the MBA said, the highest proportion since November 2023.

(Reporting by Ann Saphir; Editing by Sandra Maler)

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