February 15, 2025 - 23:35
Mortgage rates have shown little movement in recent weeks, remaining below the 7% mark. However, upcoming changes could alter this stability. Experts suggest that President Trump's newly implemented tariffs may lead to increased mortgage rates for prospective homebuyers. Melissa Cohn, a Regional Vice President at William Raveis Mortgage, notes that market volatility often prompts banks to adopt a more conservative approach to pricing.
Cohn explains, "Volatility is detrimental, similar to inflation, as it causes banks to widen the margin above the ten-year yield. This results in higher rates for 30-year fixed mortgages." Until the market stabilizes and banks feel secure enough to lower their margins, mortgage rates are likely to remain elevated.
Furthermore, many homeowners have opted to withdraw their properties from the market, feeling constrained by their existing low mortgage rates and choosing to wait for clearer trends in interest rates as spring approaches. This situation adds another layer of complexity to the housing market landscape.
