Particle.news
Download on the App Store
7 ARTICLES
·
2w ago

Mortgage Rates Reach Six-Month Low as Tariffs Shake Markets

The drop to 6.55% offers temporary relief for buyers, but rising home construction costs and inflation risks loom.

Ryan Vasko and his wife are shown outside the home they just bought after moving from Oregon Thursday, April 3, 2025, in Littleton, Colo. (AP Photo/David Zalubowski)
Zillow Home Loans mortgage signage is displayed in downtown Phoenix, Arizona, on June 5, 2024.
Ryan Vasko and his wife are shown outside the home they just bought after moving from Oregon, April 3, 2025, in Littleton, Colo. (AP Photo/David Zalubowski)
Image

Overview

  • The 30-year fixed mortgage rate fell to 6.55%, its lowest level since October 2024, driven by declining Treasury yields following new tariffs.
  • President Trump’s unexpected tariff measures prompted investors to shift to Treasury bonds, reducing yields and temporarily lowering mortgage rates.
  • New tariffs are projected to increase the average cost of new home construction by $9,200, according to the National Association of Home Builders.
  • Experts warn that tariffs may fuel inflation, potentially reversing the recent decline in mortgage rates in the coming months.
  • Housing market activity remains sluggish, with limited inventory, high prices, and economic uncertainty continuing to strain affordability and buyer sentiment.