February 16, 2025 - 02:18
Recent fluctuations in bond yields, driven by tariff threats and new inflation data, have created a volatile environment for financial markets. Despite this upheaval, mortgage rates have surprisingly remained stable, with the average rate on a 30-year fixed loan dipping slightly last week but still hovering around the 7% mark.
This stability in mortgage rates occurs even as investors react to shifting economic signals, including concerns over inflation and trade policies. Typically, bond yields and mortgage rates move in tandem, but the current scenario has led to a disconnect. The slight decline in mortgage rates offers potential homebuyers a glimmer of hope amid rising costs in other areas of the economy.
As the market continues to react to ongoing economic developments, many are left wondering how long this trend will last and what it means for future borrowing costs. Homebuyers and those looking to refinance will need to stay vigilant as the financial landscape evolves.
