From Yahoo Finance: 2025-04-16 07:00:00

Tariff-induced housing market turmoil is evident as mortgage applications for new home purchases and refinancings plummeted last week due to stock and bond market volatility. Purchase applications fell by 5% while refinancing applications dropped 12%. Economic uncertainty and rate fluctuations are causing potential buyers to hesitate.

Average 30-year fixed mortgage rates surged to 6.81% from 6.6% last week, following 10-year Treasury yields. This increase is attributed to investor concerns over Trump’s tariff policies. As a result, more homebuyers are opting for adjustable-rate mortgages, comprising 9.6% of application activity, the highest since November 2023.

In response to rising mortgage rates, more buyers are turning to adjustable-rate mortgages with initial rates closer to 6%. Trump’s tariff policies and bond market reactions are influencing the housing market, causing fluctuations in mortgage rates and application trends.

Mortgage rates have risen to 6.88% as of Tuesday, with more buyers choosing adjustable-rate mortgages. The market is responding to the impact of Trump’s tariff policies and bond market reactions on interest rates.

As a Senior Reporter for Yahoo Finance, Claire Boston covers housing, mortgages, and home insurance, providing insights into the current market trends. Stay informed with the latest personal finance news on investing, debt management, home buying, retirement planning, and more from Yahoo Finance.

Read more: Mortgage applications dropped last week as rates shot up