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

Mortgage rates can change daily and even hourly. Tharon Green/CNET This week, mortgage rates are being influenced by headlines about ongoing trade negotiations and the bond market’s reaction to today's inflation report. The April Consumer Price Index report shows price growth at 2.3%, the slowest annual pace in years, and down slightly from the previous month. Though the report was mild, economists don't expect price growth to continue in this direction. Forecasts show prices will soon accelerate once we see an impact in import taxes. This comes after the White House announced its 90-day “reset” on steep tariffs with China on Monday, which sparked a surge in stocks and bonds. Mortgage rates, which are pegged to the bond market, specifically the 10-year Treasury yield, saw upward pressure as a result. Between Monday and Tuesday, the average rate for a 30-year fixed rate mortgage jumped from 6.85% to 6.88%, according to Bankrate data. Following the release of Tuesday’s CPI data, 10-y ... Read full article.