Two days after Trump’s so-called «Liberation Day,» mortgage rates fell to their lowest level in six months. It may not last, experts warned.
Donald Trump’s sweeping tariffs have thrown the global stock market into chaos and are likely to hurt the U.S. economy by increasing inflation, economists warned—but they may also finally bring mortgage rates down.
Following the president’s announcement of new tariffs on what he called «Liberation Day» last week, mortgage rates fell to their lowest level in six months, offering some respite to aspiring homebuyers struggling with shrinking affordability on the U.S. market.Why It Matters
Mortgage rates shot up in 2022 as a result of the Federal Reserve’s aggressive rate-hiking campaign to combat the rise of inflation and have remained high despite the central bank’s recent cuts to its interest rates.
Historically high mortgage rates have exacerbated the country’s housing affordability crisis, contributing to eroding potential homebuyers’ purchasing power.What To Know
Trump has announced a 10 percent baseline tariff on imported goods, with higher rates for specific countries—including 20 percent on imports from the European Union and 35 percent on Chinese goods.
Several economists have warned that these tariffs could lead to higher prices for American consumers, slower growth and higher unemployment—as well as higher construction costs that could slow down homebuilding across the country.
A rise in inflation is likely to prevent the Federal Reserve from cutting interest rates significantly, a move that many have been counting on to improve affordability in the U.
