The average rate on a 30-year mortgage in the U.S. eased this week, though it remains close to its highest level in more than two months.
The rate fell to 6.81% from 6.83% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.17%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.94% from 6.03% last week. It’s down from 6.44% a year ago, Freddie Mac said.
Mortgage rates are influenced by several factors, including global demand for U.S. Treasurys, the Federal Reserve’s interest rate policy decisions and bond market investors’ expectations for future inflation.
After climbing to a just above 7% in mid-January, the average rate on a 30-year mortgage has remained above 6.62%, where it was just two weeks ago. It has risen sharply since then, reflecting volatility in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The yield, which had mostly fallen this year after climbing to around 4.8% in mid-January, spiked earlier this month to 4.5% amid a sell-off in government bonds triggered by investor anxiety over the potential fallout from the Trump administration’s ongoing trade war.
The 10-year Treasury yield was at 4.34% in midday trading Thursday, down from 4.40% late Wednesday.
“The recent back and forth on tariffs and other economic policy has led to market turmoil and a general sense of unease, which can be felt in stubbornly high mortgage rates,” said Hannah Jones, senior economic research analyst at Realtor.com.
Lower mortgage rates help boost homebuyers' purchasing power, but they haven't come down enough to encourage more home shoppers at a time when real estate prices are still rising nationally, albeit more slowly, and the number of properties on the market has risen sharply from a year ago.
The elevated mortgage rates have dampened homes sales so far this spring, traditionally the busiest period of the year for the housing market. Sales of previously occupied U.S. homes fell in March, posting the largest monthly drop since November 2022.
Last week, mortgage applications fell 12.7% from a week earlier, as mortgage rates climbed to their highest level in two months, according to the Mortgage Bankers Association.
“With rates now close to 7%, many potential borrowers will likely stay on the sidelines until they have a better idea of the direction that rates, and the economy, are headed,” said MBA CEO Bob Broeksmit.
Economists expect mortgage rates to remain volatile in coming months, though they generally call for the average rate on a 30-year mortgage to remain around 6.5% this year.
FILE - A "For Sale" sign is displayed in front of a home in Des Plaines, Ill., Monday, Aug. 26, 2024. (AP Photo/Nam Y. Huh, File)
LOS ANGELES (AP) — Attorneys for Erik and Lyle Menendez, who were convicted of killing their parents in 1989, will make their case to a judge Friday that Los Angeles prosecutors should be removed from the brothers' resentencing case.
The brothers were sentenced in 1996 to life in prison without the possibility of parole for fatally shooting their entertainment executive father, Jose Menendez, and mother, Kitty Menendez, in their Beverly Hills home. The brothers were 18 and 21 at the time of the killings. Defense attorneys argued the brothers acted out of self-defense after years of sexual abuse by their father, while prosecutors said the brothers killed their parents for a multimillion-dollar inheritance.
Former LA County District Attorney George Gascón had opened the door to possible freedom for the brothers in October by requesting their sentences be reduced to 50 years with the possibility of parole. His office said the case would've been handled differently today due to modern understandings of sexual abuse and trauma, and that the brothers had rehabilitated during their 30 years in prison.
But current district attorney Nathan Hochman has reversed course and opposes the brothers' resentencing. Hochman has said the brothers have not taken full responsibility for their crimes because they have not admitted to lies told during their trials. The Menendez family and lawyers have been heavily critical of the way Hochman has handled the case.
Hochman’s office filed a motion to oppose his removal from the case, dismissing the defense’s concerns as simply “not being happy” with prosecutors’ opinion on resentencing.
“Disagreeing with the opposing side’s position is not a conflict of interest, it is simply a disagreement,” it said.
While Hochman's conduct is the focus of defense attorneys' petition, they want the case entirely removed from the Los Angeles district attorney's office, in which case the state attorney general's office would usually step in.
However, California Attorney General Rob Bonta filed a motion this week siding with Hochman, saying the defense had not adequately demonstrated a conflict of interest.
Laurie Levenson, a former federal prosecutor and professor of criminal law at Loyola Law School in Los Angeles, said these types of recusal requests are “almost never” granted.
“Defendants don’t usually get to pick their prosecutors,” she said. “Occasionally an individual prosecutor will be recused, but to recuse an entire office is very rare.”
Generally, this only happens if a prosecutor's personal family member is involved or if the district attorney's office received outside payment in a case, Levenson said.
During long-awaited resentencing hearings last month, attorneys engaged in a heated debate over whether material from risk assessments completed by the state parole board at the governor’s order should be admissible in court. The hearings were delayed, and the brothers' lead attorney Mark Geragos said he would move to recuse Hochman from the case.
In a motion filed April 25, Geragos argued that Hochman's bias against the brothers and mistreatment of the Menendez family posed a “genuine risk” the brothers would not receive a fair hearing.
He pointed to Hochman's demotion of Nancy Theberge and Brock Lunsford, the two deputy district attorneys who filed the original resentencing motion. Theberge and Lunsford have since filed lawsuits against Hochman alleging they were punished for their work on the Menendez case.
Hochman also hired Kathleen Cady, who represented Milton Andersen, the only Menendez family member who opposed the brothers' resentencing at the time, to head his Office of Victim Services. Andersen died in March.
Geragos said no one from the victim services office had ever reached out to the Menendez family to offer support. In mid-April, both Cady and Hochman were present at an organization's rally to condemn the Menendez brothers' resentencing, he said.
Finally, Geragos said the district attorney's office had violated Marsy's Law, which ensures victims in California are treated with fairness and respect.
Menendez cousin Tamara Goodell filed a complaint with the U.S. Attorney's Office in which she wrote Hochman used a “hostile, dismissive, and patronizing tone” that left the family “distressed and feeling humiliated.”
Hochman's motion said the defense had not presented any proof that hiring Cady, a seasoned prosecutor and attorney, prevented his office from treating the Menendez brothers fairly, and that the reassignments of Theberge and Lunsford were “internal staffing decisions."
Marsy's Law also does not give victims the right to seek the removal of a prosecutor, the motion said.
The Menendez brothers are still waiting for the full results of a state parole board risk assessment ordered by Gov. Gavin Newsom’s office. The final hearing, scheduled for June 13, will influence whether Newsom grants the brothers clemency.
Attorney Mark Geragos, a lawyer for Erik and Lyle Menendez, who were convicted of killing their parents in 1989, speaks to reporters as he arrives to court Friday, May 9, 2025, in Los Angeles. (AP Photo/Jae C. Hong)
Anamaria Baralt, center, a cousin of Erik and Lyle Menendez, who were convicted of killing their parents in 1989, arrives to court Friday, May 9, 2025, in Los Angeles. (AP Photo/Jae C. Hong)
