Weekly Mortgage Rates Surge: What You Need to Know After the Latest Tariff News

Mortgage rates have climbed for the first time in a month, reaching an average of 6.62% for the 30-year fixed-rate mortgage. This change marks a rise of 11 basis points and interrupts a three-week streak of declining rates. Investors are on edge due to inconsistent tariff news affecting the market.

Recently, investors faced twists and turns in tariff policies, such as the recent imposition of 25% tariffs on imports from Canada and Mexico, only to see those tariffs postponed. Concerns linger about potential increases in tariffs on Canadian aluminum and steel, yet these were withdrawn after Canada threatened to hike electricity prices. Amidst this chaos, the Trump administration enforced 25% tariffs globally on metal imports.

Tariffs can disrupt the progress made by the Federal Reserve in keeping inflation under control. If inflation rises, it could lead to increased interest rates. Surprisingly, mortgage rates did not drop even as the S&P 500 index fell by about 4% between March 5 and March 12, highlighting that mortgage lenders are currently more focused on inflation than the stock market.

Samir Dedhia, CEO of One Real Mortgage, explained that the recent rise in mortgage rates is largely due to tariff uncertainty. He stated, “If new tariffs drive up costs for goods and materials, inflation could stay high longer than anticipated. This might lead the Federal Reserve to adopt a more cautious stance on rate cuts.”

Jerome Powell, Chair of the Federal Reserve, reassured the audience at a University of Chicago event on March 7 that the economy remains stable. He emphasized that there’s no immediate need for intervention, suggesting that the Fed will likely maintain the current federal funds rate during the March 19 meeting.

Inflation continues to be a pressing issue. In February, core inflation measured at 3.1%, slightly below expectations of 3.2%. However, the Federal Reserve primarily monitors the Personal Consumption Expenditures (PCE) Price Index for inflation, which could show different results later this month.

As uncertainty grows, many households feel the impact. Elizabeth Renter, a senior economist at NerdWallet, noted, “We’ve seen inflation expectations rise and consumer sentiment drop recently. It’s tough for anyone to make sound financial decisions amid such unpredictability.”

While individuals may not influence inflation rates or tariff policies, future home buyers can take practical steps. They can boost their down payment savings, improve their credit scores, and pay down credit card debts. These actions can help them navigate a fluctuating market.

For in-depth insights, you can explore more on [NerdWallet](https://www.nerdwallet.com/article/investing/inflation) about how tariffs and inflation can affect financial decisions.

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