Mortgage Forecast: Tariffs Have Kept Mortgage Rates High. Will That Change in May?

Mortgage rates can change daily and even hourly. Tharon Green/CNET This week, mortgage rates are mainly driven by headlines about ongoing trade negotiations and the bond market’s reaction to tomorrow’s inflation data. On Monday, the White House announced a 90-day “reset” on steep tariffs with China, assuaging market fears of immediate supply shocks and reducing the recession risk forecast. Stocks and bonds surged in the aftermath. Mortgage rates, which are pegged to the bond market, specifically the 10-year Treasury yield, could see some upward pressure as a result. Over the past few weeks, Trump’s erratic tariff agenda has whipsawed through markets, causing financial panic among US households. Economists have also warned of increasing risks of inflation combined with an economic downturn, commonly referred to as stagflation. A reprieve from the steepest levies on China is welcome news for investors, but it’s ultimately just a temporary reduction in duties to prevent a breakdown in ... Read full article.