The future for the mortgage market remains unclear. While rates may be set to continue on a downward trajectory in the weeks and months ahead, a weakening economy could also stir fears of job losses and a jump in unemployment.
What’s more, Federal Reserve chair Jerome Powell warned Friday that Trump’s tariff war could stoke inflation and keep the central bank on the sidelines even if the economy begins to grind to a halt.
Should homebuyers put their purchasing plans on hold?
For those borrowers who are still tempted to make their move despite the economic storm clouds, the coming weeks could offer some opportunity, according to Greenside Capital president Kurt Brandly (pictured top).
He told Mortgage Professional America prior to Trump’s bombshell tariff announcement that while there had been plenty of doom and gloom around the mortgage outlook in the opening months of 2025, some clients were seeing potential in lower borrowing costs down the line.
Following Trump’s global tariffs, markets anticipate the Fed will cut rates by 100 basis points in 2025 to counter recession fears.https://t.co/vjnxl4B2k0
— Mortgage Professional America Magazine (@MPAMagazineUS) April 4, 2025
“When I talk to my clients I go through this stuff. If they have questions or concerns about how tariffs will impact interest rates, I remind them the typical song and dance is that fear does typically drop interest rates, at least in the short term,” Brandly said.