HousingWire Daily Logan Mohtashami on how the trade war is impacting mortgage rates
5 snips
Apr 30, 2025 AI Snips
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Episode notes
Trade War Volatility and Bond Yields
- The trade war caused significant volatility in bond yields, including sharp drops when tariffs increased.
- Markets are spooked but currently favor progressing to trade deals, reflected by stable yields around 4.17%.
Tariffs Worsen Mortgage Rates
- Trade war tariffs increased mortgage rate spreads by about 20 basis points, raising average rates from around 6.55% to 6.80%.
- If trade deals proceed, mortgage rates could decrease, easing housing market conditions.
Mortgage Professionals Should Focus
- Mortgage professionals should focus on clients and controllable factors despite rate volatility.
- Emphasize purchase loans over refinancing as refi demand has diminished with current rates.