Mortgage rates initially dropped amid market turmoil, but quickly soared higher, uncertainty remains

From Yahoo Finance: 2025-04-08 12:31:00

Mortgage rates initially dropped amid stock market turmoil, but quickly soared higher on Monday. 30-year rates hit 6.82%, mirroring a rise in 10-year Treasury yields to 4.18%. Experts suggest this volatility may be the new norm due to tariff uncertainties. The Fed’s reluctance to cut rates has also impacted rates, now at 6.85%.

The market surge in Treasury yields reflects concerns beyond a potential recession, possibly signaling stagflation. Trump’s calls for rate cuts clash with the Fed’s approach to economic uncertainties. Though the Fed can’t directly control mortgage rates, market expectations guide their movement. Mortgage rates unpredictably surged, surprising many in the industry.

Despite the turmoil, some experts predict falling commodity prices may ease inflation concerns and lower mortgage rates in the future. Clients are advised to be ready for rate dips, as pent-up demand remains high. Uncertainty looms as loan officers brace for fluctuating rates and prepare for potential refinancing opportunities.

The future of mortgage rates remains uncertain, with predictions ranging from 5% to 8% in the next six months. As the market navigates economic uncertainties and policy changes, mortgage rates are expected to remain volatile. Buyers and refinancers are advised to stay informed and prepared for rate fluctuations in the coming months.



Read more at Yahoo Finance: Low mortgage rates from tariff pain? Don’t count on it.