Today marks a significant shift in the realm of mortgage rates after a period of stagnation. Unfortunately, the change comes in the form of a slight increase, bringing the average lender uncomfortably close to the highest levels seen in 8 months. The most prevailing top tier conventional 30-year fixed rate now stands at 7.125%.
In the world of mortgage rates, economic data plays a pivotal role in determining the direction rates will take. With no major economic reports scheduled for this week, market movements have been influenced by political headlines and speculation. The ongoing saga of Trump’s tariff plans has been a key factor affecting bonds and rates, as market participants grapple with the potential implications on inflation and economic growth.
Trying to predict the impact of tariffs on the economy is no easy task, as opinions vary widely among market participants. Some believe that tariffs could lead to increased inflation, while others argue that they may hinder economic growth. This uncertainty has contributed to the recent fluctuations in mortgage rates, leaving lenders and borrowers on edge.
