Mortgage Rates Jump Above 7% Amid Tariff Impact
Mortgage rates climbed this week, with the average 30-year fixed rate exceeding 7%. This increase is partly attributed to recent tariff announcements that have affected the bond market. Higher tariffs can lead to uncertainty in the economy, impacting interest rates. Homebuyers may face increased borrowing costs as a result.
The average rate on the popular 30-year fixed mortgage surged 13 basis points Friday to 7.1%, according to Mortgage News Daily. This increase reflects broader market concerns stemming from new tariffs and their potential impact on the economy. When tariffs are implemented, they can influence inflation expectations and investor sentiment, which in turn affects bond yields. Mortgage rates often track the movement of the 10-year Treasury yield. As tariffs create economic uncertainty, investors may demand higher yields to compensate for the perceived risk, pushing mortgage rates upward. This rise in mortgage rates could make homeownership less affordable for some buyers and potentially slow down activity in the housing market. Experts are closely monitoring the situation to assess the long-term effects of tariffs on the real estate sector.
Source: Read the original article at NBC