Mortgage Rates This Week – May 1, 2025

Mortgage rates eased this week as investors digested a muted core durable goods report and cooler inflation readings, outweighing renewed tariff jitters. The 30-year fixed rate now stands at 5.875%, APR 6.093% with paying points or 6.50%, APR 6.513%, with 0 points for borrowers with excellent credit and 25% down on a single-family primary home.

Economic releases—not just political headlines—have driven market moves for the first time in several weeks. While March’s headline Durable Goods Orders jumped 9.2% (boosted by commercial aircraft bookings), core capital goods orders (which feed into GDP) rose only 0.1%, hinting at chilled business spending outside transportation.

Yesterday’s Data

1. ADP Employment: Private payrolls rose by only 62,000 in April—well below the 114,000 consensus—marking the weakest gain since hurricane-impacted readings last summer. Softer job growth eases wage-inflation concerns, and if the trend continues, it would lead to lower mortgage rates. It will be interesting to see if the BLS report shows similar weakness, as these two reports often show different results.

2. Q1 GDP: The economy contracted 0.3% annually, pulled down by a surge in import stockpiling ahead of new tariffs. A shrinking GDP underscores mounting growth risks and tilts the outlook in favor of lower borrowing costs; however, the weakness of the headline report was muted with the internal data showing continued strength in US consumption.

3. PCE Inflation: The Fed’s preferred gauge was flat in March (MoM) and up just 2.3% YoY—core PCE at 2.6% YoY—both below earlier readings. As inflation continues to cool, it gives the Fed more room to act if employment begins to slow.

Trade tensions remain a wild card. New tariffs on imports from major trading partners, plus the threat of additional duties, continue to worry the markets. Businesses and consumers face uncertainty over whether added costs will curb demand (pushing rates down) or stoke inflation pressures (pushing them up).

Despite the global political chaos, tomorrow’s BLS Non-Farm Payroll Report will likely significantly impact the future direction of mortgage rates. Whether or not these reports start to show a slowdown in the resilient job market will be interesting and could quickly shift rate expectations for both the Fed and mortgage rates if the employment picture is worse than expected. Currently, the Fed seems focused on jobs as they have not become more accommodative over the past couple of years, as inflation has slowed. With a dual mandate to fight inflation and keep healthy employment levels, they will be in a challenging position if the jobs market starts to crack, and the impact of tariffs on inflation is still unknown.

Earlier in the month, the Producer Price Index (PPI), which measures wholesale inflation, dropped in March and was reported at -0.4%. Producer prices rose to 2.7% from 3.2% year over year, well below expectations. The core rate, which strips out food and energy prices, was -0.1%, much lower than expected. The annual rate was 3.3%, which was also cooler than expected. Overall, this report would generally cause rates to move lower; however, tariff talk is dictating the market more than economic data.

The Consumer Price Index (CPI) showed inflation rising 0.1% for the month and decreasing from 2.8% to 2.4% year-over-year, below estimates. The core reading, which removes volatile food and energy costs, increased 0.1% in March and decreased from 3.1% to 2.8% annually.

Spring Buying Season

Buyer demand remains robust, and competitive bidding is common on well-priced homes. Anecdotally, we have seen an uptick in listings following Easter weekend, which is excellent news for potential home buyers. Fully underwritten pre-approvals are key to standing out and getting offers accepted in a competitive market.

To find the most affordable rate, compare different lenders and collaborate with a company that offers transparent mortgage rates and costs online. Experienced Mortgage Advisors and Loan Officers can guide you through the current market conditions and chart the most effective course forward.

Current Mortgage Rates This Week for WA, OR, ID, CA, and CO From Sammamish Mortgage
05/01/2025

**Conforming assumptions – $800k Purchase Price, 25% Down, 800+ Credit
**Jumbo assumptions – $1.5MM Purchase Price, 25% Down, 800+ Credit

Washington State mortgage rates

Mortgage rates In Oregon

Mortgage rates in Idaho

Mortgage Rates for Colorado

California Mortgage Rates

National Average Mortgage Rates:

(State-specific rates sourced from Sammamish Mortgage – National Average rates sourced from Zillow)

Consumer Price Index, Consumer Sentiment & Inflation

Without a doubt, the biggest driver of interest rates is inflation. With that in mind, we continue to focus on inflation data and expectations going forward to gauge what we can expect to see interest rates in the coming months. Current inflation is running well above the Fed’s annual target of 2%, pushing the Fed’s hand to raise short-term rates to slow things down. While current numbers remain elevated, we expect a significant reduction in the inflation readings in the coming months as various factors moderate the pace of inflation.

Consumer Price Index (CPI) March = 0.1% – Annual = 2.4%  

Producer Price Index (PPI) February = -0.4% – Annual = 2.7%

Personal Consumption Expenditures (PCE) March = 0.0% – Annual = 2.3% 

Overall, it is difficult to predict what will happen with mortgage rates in the near term. With global economic turmoil, banking issues, inflation, and thus far a far more resilient economy than many expected, trying to predict rates from one day to the next to time a rate lock is almost impossible or at least requires luck. However, looking at a longer time horizon, it’s much easier to see that there is an excellent chance we could see rates move lower from current levels, providing an opportunity for recent and existing buyers to potentially refinance in the future.

See Current Rates

What the Fed rate hike means for borrowers, savers, and investors

When the Federal Reserve raises interest rates, it affects various aspects of the economy, including the housing market, savings, and investment.

For potential homebuyers, a Fed rate hike typically leads to an increase in mortgage rates in the early stages of a tightening cycle; however, if the market thinks the Fed rate increases will hurt the economy and cause inflation to decrease, mortgage rates can improve when the Fed raises the Fed Funds Rate. It’s important to note that the Fed does not control mortgage rates. Fed rate increases do directly impact credit card rates, car loans, and commercial loans, which are shorter in duration than a typical 30-year fixed mortgage.

For savers, a Fed rate hike may lead to higher returns on savings accounts and certificates of deposit (CDs). In addition, banks and other financial institutions may increase the interest rates they pay to savers to remain competitive, which can benefit savers looking to earn more on their savings.

A Fed rate hike may impact the stock and bond markets for investors. Typically, when interest rates rise, the value of stocks and bonds can fall as investors may shift their money to fixed-income investments with higher returns. However, the impact of a rate hike on the markets can be complex and depends on various factors, such as the overall state of the economy, inflation expectations, and global events.

Loan Limits Increased For 2025

Loan limits have increased for 2025. Each county in every state has its loan limit. That said, the new standard conforming loan limit is $806,500, and high balance limits in select high-priced areas can go up as high as $1,037,300 for 1-unit properties in 2024.

Visit our 2025 conforming loan limit pages for Washington State, Oregon, Idaho, California,, and Colorado.

For FHA loan limits for 2025, visit our pages for Washington State, Idaho, Colorado, California and Oregon.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Instant Mortgage Rate Quote

Ready to Apply For a Mortgage?

Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, Colorado & California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Our programs include the Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today with any questions you have about mortgages.

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