Real estate economists expected a roller coaster ride as the market reacts to the tariffs put in place by President Trump and that is what happened yesterday and today.
The 30-year fixed-rate mortgage jumped from 6.60% to 6.82% yesterday, the biggest 24-hour hike so far this year, according to Mortgage News Daily. The rise continued this morning, but at a slower pace, hitting 6.85% as stocks surged early in the trading session.
Today's rate increase wasn't nearly as big as yesterday's, but it brings the average 30 year fixed rate to the highest level since late February. This is the biggest two-day rate increase so far this year, but if you didn't know about the past 4 days, current levels wouldn't look too troubling. Rates could go down as the economy slows and the stock market remains bearish, but they could also rise as tariffs increase prices and fuel inflation.
No one really knows for sure what will happen but hang on to your hat for the ride.
