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HomeEntrepreneurTariffs Could Lower Mortgage Rates, Says Real Estate Expert

Tariffs Could Lower Mortgage Rates, Says Real Estate Expert

For some mortgage brokers, uncertain economic times can mean they’ll be busier than ever at work.

“I expect to be on a mortgage rate roller coaster for the next few months,” Melissa Cohn, regional vice president of William Raveis Mortgage, told Entrepreneur in an email.

The announcement of the new tariffs has caused the equity markets and bond yields to plunge, which is causing mortgage rates to fall as well, Cohn, a 43-year mortgage industry veteran, said.

“Mortgage rates are going down at the moment,” Cohn notes.

While that is “good for the real estate market,” it’s not all good news: Cohn warns that the higher cost of goods could push up the rate of inflation, which will cause rates to go back up.

Plus, with significant wealth being lost in the equities markets, “people will be loath to cash in right now,” she says.

Related: How CEOs and Business Leaders Are Reacting to President Donald Trump’s ‘Liberation Day’ Tariff Plan

According to Bankrate, on Friday, April 04, 2025, the current average 30-year fixed mortgage interest rate is 6.65% (and nine basis points lower than last week).

“What’s bad for the economy is good for mortgage rates,” Cohn told Bankrate this week. “I wake up in the morning knowing it’s going to be a good day for business and a bad day for my brokerage account.”

Though rates could drop, it may not be a big change.

Dan Richards, president of Seattle-based Flyhomes Mortgage, told USA Today that mortgage rates are “unlikely to fall as quickly, or as much,” as other markets, and the uncertainty could keep buyers away.

Related: These Are the ‘Secrets’ to Getting a Deal on a Home (Even in This Real Estate Market), According to Barbara Corcoran

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