Mortgage rates drop as Trump holds off on tariffs in first days in office
Published On Jan 23, 2025, 12:26 PM
Mortgage rates have dropped for the first time in six weeks, with the average 30-year fixed-rate mortgage now at 6.96%, down from 7.04%. This decrease is attributed to a stabilizing market sentiment following President Trump's initial executive actions, which included delaying tariffs on imports from China, Mexico, and Canada. Though there was a slight increase in new purchase applications, refinancing applications fell. Overall, the mortgage rates remain near their peak levels, and experts predict rates will likely stay elevated throughout the year, affecting home sales due to affordability challenges.
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The decline in mortgage rates, albeit slight, may increase buyer interest and activity in the housing market. However, persistent affordability issues may hinder significant growth in home sales. Overall economic sentiment seems tempered, given the geopolitical aspects influencing U.S. economic policies.
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