How are the New Tariffs Affecting Mortgage Rates?

Filed under: Market Comentary

The trade war with China is dominating the news headlines right now. Everyone knows that economic news can affect interest rates, so many people are watching to see what will happen in the mortgage industry. Will these tariff changes have an impact on your ability to refinance or purchase a home?

Market Changes

In today’s video, I want to share a few thoughts about what to expect with these new tariffs. The markets don’t like the tariff changes that are happening. As usual, money is moving out of equities and into bonds, which caused a bit of improvement in interest rates.

I just looked at the 1-year chart for mortgage-backed securities, which is what sets interest rates. They are nearly at the best levels we’ve seen in the last 12 months.

Buying or Refinancing a Home?

Anyone who is in-process with a loan right now, rest assured to know that I am keeping an eye on the market to take advantage of anything we can do to lower your interest rates. If you are looking at houses, I can’t stress enough the importance of these rates coming down. When interest rates drop, it’s a great reason to get off the fence and buy a home. Or consider refinancing options if you are planning to stay in your current home for a while.

Rates are strong right now, so it makes sense to take advantage of the financing options that are available. When buying a home, it’s not just about the price of the house. The financing also plays a big part in the long-term strategy for real estate ownership.

Consider this: if rates go up by 1%, it equates to a 10% drop in the price of the home that you can afford to purchase. Your interest rate has a direct impact on your monthly mortgage payment, which influences the type of home that you can buy.

As always, I’m here to answer your questions if you need personal recommendations for your mortgage. Reach out any time to learn about the financing solutions that are available to get you into the home of your dreams.

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