Mortgage rates are facing uncertainty in April as businesses and consumers prepare for potential higher tariffs on imports. The Trump administration’s plans to impose tariffs on imports from major trading partners could lead to inflation and impact economic growth. Federal Reserve Chair Jerome Powell noted that all forecasters are predicting inflation due to tariffs, which could in turn affect mortgage rates.
Fitch Ratings economists predict that tariffs could increase inflation by one percentage point, potentially pushing mortgage rates higher. However, the exact impact on mortgage rates remains uncertain as the tariffs have already been factored into current rates. With rates currently hovering at around 6.5%, predicting their future direction is challenging.
Despite the uncertainty, experts advise homebuyers to focus on personal circumstances rather than market predictions when deciding to buy or sell. Zillow’s forecast suggests that mortgage rates will likely stay around 6.5% for the remainder of the year. Other organizations, such as the Mortgage Bankers Association and Fannie Mae, anticipate a slight decrease in rates in the coming months.
Overall, the outlook for mortgage rates in April and beyond is uncertain due to the potential impact of tariffs. While some forecasts predict a rise in rates, there is a possibility of rates remaining stable or even decreasing slightly. Homebuyers are encouraged to take advantage of low rate windows and make decisions based on their individual needs rather than market predictions.
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