Tariffs Were In, Now Many Are Paused. U.S. Mortgage Rates Whipsawed

First off, if you’re curious about what whipsawed means – so was I. In economics and finance, whipsaw refers to the condition of a highly volatile market in which sharp price movement is quickly followed by a sharp reversal. Whipsawed. Your word of the day! You’re welcome.

If you’ve been watching current mortgage rates in the days after President Trump announced reciprocal tariffs on April 2nd, you might’ve noticed something surprising: Mortgage rates dropped around April 8th. Why? Turns out that recent global tariffs are doing more than just disrupting supply chains; they’re influencing the 10-year Treasury note, which is the key driver behind the 30-year fixed mortgage rate.

A few days after the tariffs were announced, 10-year Treasury yields dropped sharply. Mortgage rates started to fall too. Then the 10-year jumped back up quickly. Whipsawed.

Check the tracker to follow the 10-year treasury yield. This is a great tracker to monitor in addition to mortgage interest rates today.So, whether you’re eyeing a new home or thinking about refinancing your mortgage, let’s make sense of this thing together and try and make it easy. Or at least easier.

When tariffs go up, global uncertainty follows. That makes investors nervous. Nervous investors typically park their money in safer places, like U.S. government bonds. That drives down Treasury yields, which tend to push down current mortgage rates.

And that’s happened for a moment in the days following the presidential announcement. Tariff news triggered a shift, sending mortgage interest rates to their lowest levels in over a year for a short time.

Current mortgage rate trends post-tariffs

Fannie Mae says 30-year mortgage rates usually move in step with the 10-year Treasury yield, kind of like how your thermostat reacts to the weather outside. And right now, those yields are quite volatile, which means mortgage rates might fluctuate, too.

Curious how mortgages actually work? Here’s a solid overview of the basics.

Thinking about buying a home? 

Lower rates = more purchasing power. If you’re seeing home loan interest rates are lower than you last checked, you might be able to afford more on a house or simply enjoy a lower monthly payment.

Tips for buyers:

• Consider locking your rate if you find a number you like
  
• Talk to your lender about rate buydowns or points
  
• Use a mortgage calculator like the one below to see how changes affect your budget

What the experts say: Should you buy a house now? Should you lock in your mortgage rate immediately?

Our Director of Enterprise Compliance at MoneyLion, James Scelzo, weighed in on the recent fluctuations in the 10-year treasury yield and 30-year fixed mortgage rates:

“In an environment where mortgage rates seem unpredictable, it’s important to focus on what you have control over. If you are interested in buying a home, organize your personal documentation, like paystubs and bank statements, so you can get pre-approved with a mortgage company and understand what you can afford. These steps will have you in a position to make informed decisions and confidently put an offer on a home.”

-J. Scelzo, 9 April 2025

James has over ten years of experience in residential mortgage lending and currently holds 43 state mortgage licenses, NMLS# 1288484.

Thinking about refinancing?

If your current rate starts with a 7, or even a high 6, there were moments this past week where the 30-year fixed mortgage rate dropped lower. Lower mortgage refinancing rates mean potentially slashing your monthly payment or shortening your loan term.

A quick, hypothetical scenario:

• $350,000 loan at 7.25% = ~$2,390/month
  
• Refi at 6.25% = ~$2,155/month
  
• That’s a savings of over $2,800 a year!

Don’t forget to account for upfront costs when considering a refi. Try running the numbers with your lender to know if the costs outweigh the long-term benefits. 

👉🏻 Learn More: What is Refinancing?

A mortgage expert’s thoughts on refinancing in today’s market

“Refinancing your mortgage can be a useful tool for many reasons, like possibly lowering your monthly payment or accessing equity, but it is challenging to predict the market. To be in a good ready position, it’s important to have a clear plan and budget. Make sure you know the terms of your current mortgage, like the rate and how much you owe on your loan. Utilize online tools available to see what your payment could potentially be with different rates and terms and always consult with a mortgage loan officer.”

-J. Scelzo, Director of Enterprise Compliance at MoneyLion, 9 April 2025

The Tariff Rate Rollercoaster We Didn’t See Coming

You probably didn’t think the threat of a trade war could help your house hunt, but here we are. With mortgage rates fluctuating due to global economic tension, there may be more moments of opportunity to lock in a lower mortgage rate.