Weekly Mortgage Rates Rise Slightly, But Prices Are the Real Problem

This week saw a slight increase in mortgage interest rates, but the good news is that the rise was smaller compared to the previous weeks. Despite hitting a round number, the increase may not be as significant as it seems.

The average rate for a 30-year fixed-rate mortgage went up by three basis points to 7% by the week ending Apr. 24, as reported by Zillow to BW. A basis point represents one one-hundredth of a percentage point.

Stable mortgage interest rates offer some relief to home buyers, especially those with tight budgets. With rates holding steady, the likelihood of affording a home today and in the future remains promising.

However, affordability is subjective to individual budgets. Finding an affordable home with a low price is increasingly challenging, akin to locating inexpensive eggs.

The median price of existing single-family homes sold in March 2025 was $408,000, marking a 2.9% increase from March 2024 and a staggering 44% surge from March 2020. Despite a slower growth rate, home prices in the U.S. have significantly escalated over the past five years.

NAR chief economist Lawrence Yun highlighted the continuous rise in household wealth through residential real estate, drawing a parallel to homeowners benefiting from appreciating asset values.

Prospective home buyers should consider exploring all their options, especially in new construction. The median price of new construction homes in March was $403,600, according to recent data from the U.S. Census Bureau and the Department of Housing and Urban Development.

Surprisingly, the median price of new homes sold in March was $4,400 lower than existing homes. While tariffs may impact the equation for new construction, it currently presents a competitive choice. In March, half of new homes sold for $399,999 or less, with 17% priced under $300,000.