In today’s unpredictable economic climate, homebuyers face more than just competition and high prices—they’re also feeling the ripple effects of national trade policy. One of the more unexpected shifts this spring? A spike in mortgage rates, driven in part by newly proposed tariffs from the Trump administration.
If you’re thinking about buying a home or refinancing, here’s what you need to know—and how Peak Finance Company can help you make smart moves in a shifting market.
What Do Tariffs Have to Do with Mortgage Rates?
Tariffs are essentially taxes on imported goods, and they can lead to rising prices across many industries. When the government imposes new tariffs, it can create uncertainty in the financial markets—especially for investors who buy U.S. Treasury bonds. Since mortgage rates tend to follow the yield on 10-year Treasury notes, any upward movement in yields typically means higher mortgage rates.
That’s exactly what we’ve seen in recent weeks. The average 30-year fixed mortgage rate jumped to 6.81% during the week ending April 11—the highest it’s been in two months. It was also the sharpest one-week increase since October 2024.
How Tariffs Are Impacting Home Affordability
Tariffs don’t just shake up mortgage rates—they also raise the cost of building materials like steel, aluminum, and lumber. As a result, new construction becomes more expensive. One estimate suggests that current tariffs could raise the average cost of a newly built home by more than $9,000.
Combined with higher mortgage rates, this puts extra pressure on homebuyers already navigating an affordability crunch. First-time buyers and those looking to upgrade may find themselves reevaluating their budgets or timeline.
Should You Wait to Buy?
That depends on your personal goals and financial situation. While some buyers may choose to wait and see if rates come back down, others may benefit from acting sooner—especially if they find a great property and can lock in a rate before further economic shifts occur.
Keep in mind that even if rates fluctuate, there are still competitive loan options available. A knowledgeable mortgage advisor can walk you through the pros and cons of locking in your rate now versus waiting.
How Peak Finance Can Help
At Peak Finance Company, we’re more than mortgage lenders—we’re your trusted guide in an evolving market. Our team stays on top of economic trends, rate fluctuations, and lending programs to help you make the best financial decisions.
Whether you’re purchasing your first home, moving up, or refinancing, we offer a full suite of mortgage solutions tailored to your goals.
Let’s Talk Strategy
Have questions about how tariffs or interest rates could affect your home purchase? Let’s chat. Our team is here to help you navigate today’s market with confidence.
📞 Call us at (877) 874-7325
📧 Email: info@peakfinanceco.com
Your path to homeownership starts with clarity. Let Peak Finance help you take the next step.