How New Tariffs Could Impact Mortgage Rates

Big news this week! new tariffs are in the mix, and they might shake things up for anyone looking to buy a home or refinance their mortgage. Here's a simple breakdown of what this means for you and how you can turn these changes to your advantage.

What’s Happening: Tariffs are like extra charges added on goods coming from other countries. When these go up, it can make things more expensive, which can push up inflation. This affects interest rates, which are closely tied to mortgage rates.

Immediate Effects: You might hear that mortgage rates could go up because of these new tariffs. That's because investors want higher returns to balance out the inflation they’re expecting. However, we are led to believe that inflation is still likely to come down following the economic shift. These tariffs are in place to stabilize the market, and after things settle, we expect rates to dip as we shift into a more even market. Looking ahead, we could see rates around 6% by Q4.

What This Means for You:

• Lock in Your Rate: If you're thinking about buying a house or refinancing your home, now might be a good time to lock in a mortgage rate before they potentially rise.
• Stay Informed: Things could change quickly, and keeping up-to-date means you won’t be caught off guard.
• Talk to Experts: This is where chatting with a mortgage pro (like us!) can really help. We’re here to help you navigate this ever-changing market with ease!

Good News: Even with these changes, there could be great opportunities. Sometimes, a little shake-up means better deals and options become available as the market adjusts. We’re here to catch those opportunities and make sure you benefit from them.

Wrap-Up: So, while the news about tariffs might seem like just another complication, it can also be a chance for smart planning and decision-making. Reach out if you need guidance or have any questions—we are here to help!