Real Estate Homebuyers rush to riskier loans, as tariff turmoil pushes interest rates higher Published Wed, Apr 16 2025 CNBC Mortgage rates jumped to the highest level since February last week, dampening overall demand and sending homebuyers in search of riskier loans with lower rates. Total mortgage application volume fell 8.5% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.81% from 6.61%, with points decreasing to 0.62 from 0.63, including the origination fee, for loans with a 20% down payment. Applications for a mortgage to purchase a home dropped 5% for the week and were 13% higher than the same week one year ago. Demand from buyers may be higher than a year ago, but there is 30% more active inventory on the market than there was last year at this time, according to Realtor.com.…