Tariffs rattle markets, but lower rates & refinance opportunities await!
As financial markets tank, a silver lining is lower mortgage rates
You may have seen in the news this week that President Trump enacted a slew of tariffs and as a result, the stock market has tumbled.
While that’s not good news for your 401k, there is a silver lining: This is fantastic news for mortgage rates. Since the announcement of the tariffs earlier this week, mortgage rates have sharply dropped.
Just a quick reminder: These articles I share here are researched and written by me! As part of my commitment to ongoing support for my clients and partners, I write these articles to help them understand what's really happening in the markets, beyond the headlines and soundbites.
Short story: Uncertainty in the financial markets drives money out of the stock market and into the bond market. As money pours into bonds, the yield on those bonds falls.
As we’ve discussed in this newsletter many times, mortgage interest rates closely follow the activity of the 10-year US Treasury Bond (10-year).
This chart may jog your mind. The blue line is the yield on the 10-year, and the red line is the average rate for a 30-year fixed mortgage:
And below is what happened to the 10-year bond last week week after the tariffs were announced:
And as you watch the 10-year plummet, remember the chart you just saw: Fixed mortgage rates have followed the 10-year for decades!
What’s this mean for you?
If you – or any of your friends, family, or coworkers – bought a home in the past 3 years or so, there may be an incredible opportunity to reduce your rate, lower your payment, and pay less interest on your mortgage! Now is the time to reach out to your mortgage advisor and find out if refinancing at today's rates makes sense.
The challenge
There’s no telling how long this opportunity will last. If the President digs in and stands his ground with these tariffs, rates could continue to drop. But, if countries come to the negotiating table with the President and he drops or eases some of the tariffs, the market could reverse course, and this refinance opportunity could go away.
So now what?
If you’re unsure if now is a great opportunity for you, reach out & we’ll help! We can perform an analysis to see if refinancing at today’s market rates makes sense for you.
And if it doesn’t, we can help you identify when it will make sense.
And as always, we do this with no cost, no credit check, and no commitment!
If you found this interesting or helpful, please share it with a friend, family member, or co-worker. It's my goal to educate and empower as many people as possible during this incredibly unique time in housing!
Here is how I can help!
- If you are looking to purchase a new home or have questions about a possible refinance, the market, getting preapproved, etc., or
- If you are a Realtor Broker, or Financial Services Professional looking for a lender with great financing solutions to help educate your clients on the state of the market to help them feel good about their decisions,
Please call today – I am happy to help however I can!
I am a twenty-year veteran of the mortgage and real estate industry. My experience across nearly all aspects of real estate makes me an incredibly well-rounded problem-solver. My clients are treated to a white-glove client experience every single time. Education, information, and communication are the cornerstones of my approach
☎ 248.956.0445 📧 brian@goforwardmortgage.com
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