Mortgage rates may rise in April due to uncertainty surrounding tariffs and their potential impact on the economy. Higher tariffs on imports could lead to inflation and ultimately result in higher prices for businesses and consumers. Forecasters have already factored in “tariff inflation” into their predictions for the year, with some estimating that tariffs could increase the inflation rate by one percentage point.
The uncertainty surrounding tariffs makes it difficult for potential homebuyers to make decisions about buying a house or locking in a mortgage rate. If tariffs do cause inflation to rise, mortgage rates could also increase. However, it is unclear when this increase would happen, as lenders may have already incorporated the possibility of higher tariffs into current rates.
Despite the unpredictability, experts advise homebuyers to seize any temporary opportunities for low mortgage rates rather than waiting for a sustained drop. While some forecasters predict a decline in mortgage rates in the coming months, others believe rates will remain around 6.5% for the rest of the year.
In conclusion, the April mortgage outlook is uncertain due to the potential impact of tariffs on the economy. Whether mortgage rates will rise or fall remains to be seen, but homebuyers are encouraged to act based on personal circumstances rather than predictions about mortgage rate trends.
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