Experts say it’s not immediately clear how President Trump’s new tariffs will affect borrowers, but building costs might rise and volatility may follow.
Updated today at 9:25 p.m. EDT
As stock markets plunged and economists warned of a potential recession after President Donald Trump’s implementation of massive new tariffs this week, some Americans wonder whether there may be a silver lining — lower mortgage rates.
Trump on Wednesday announced the largest increase in tariffs in U.S. history, a move he says will revitalize domestic manufacturing and amount to a “Declaration of Economic Independence.” His order imposes a new 10 percent tariff on all imported goods and higher import taxes tailored to about 60 countries.
Home loan rates, meanwhile, have dropped slightly in recent years, and many are watching whether they’ll fall further. The average 30-year fixed-rate mortgage, at 6.82 percent a year ago, was 6.6 percent as of Thursday, according to national mortgage giant Freddie Mac.
But mortgage rates aren’t the only factor ruling the housing market. As housing costs remain at an all-time high and uncertainty reigns in Washington, experts say there may not be much relief for aspiring home buyers.
Follow live updates on the Trump administration. We’re tracking President Donald Trump’s actions by day, his progress on campaign promises, and legal challenges to his executive orders and actions.
Tariffs and the economy: In April, Trump announced 10 percent tariffs on all imports and an additional punitive import tax tailored for each of about 60 countries. The trade war is sending shock waves through financial markets and rattling business owners around the world. Here’s how Trump’s trillions in new tariffs could affect America — and you.
Signal chat leak: Top officials in the Trump administration discussed highly sensitive military planning using an unclassified chat application that mistakenly included a journalist. The Atlantic published a transcript of the Signal group chat after the administration denied that any classified material had been shared. Here’s a comparison of the transcript vs. several claims the administration has made about the leak.
Federal workers: The Trump administration continues to work to downsize the federal government — eliminating thousands of jobs at agencies, including HHS, USAID, the IRS, the Social Security Administration, the Education Department, the Defense Department, the National Weather Service and the National Park Service.
U.S. DOGE Service: Elon Musk and his team have moved to dismantle some U.S. agencies, push out hundreds of thousands of civil servants and gain access to some of the federal government’s most sensitive payment systems. Here’s who’s working for DOGE.
