Mortgage Rates Drop Slightly, But Daily Index Shows Higher Rates Amid Tariff Uncertainty
The rollercoaster ride of mortgage rates continues as uncertainty looms over the housing market. According to a weekly survey, the average 30-year fixed-rate mortgage dropped slightly to 6.62%, remaining under 7% for the 12th consecutive week. However, a daily mortgage rate index painted a different picture, putting the rate at a staggering 7.10%.
The discrepancy in the numbers can be attributed to the ongoing economic and market turmoil caused by President Donald Trump’s tariff policies. Analysts warn that the recent tariff changes have upended the global economy and financial markets, leading to increased volatility in mortgage rates.
Despite the slight drop in the weekly average, experts are hesitant to predict the future trajectory of mortgage rates. Redfin’s Chen Zhao highlighted the consistent rise in rates following Trump’s tariff announcements, while Zillow’s Kara Ng suggested that rates may end the year near mid-6%.
The housing market remains in a state of flux, with Realtor.com noting the prevailing sense of “uncertainty” among consumers as they navigate the impact of tariff policy changes. As the market continues to be roiled by external factors, consumers are advised to stay vigilant and prepared for potential fluctuations in mortgage rates.
