Mortgage Rates Rise Today as Trump’s Tariff Threats Drive Economic Uncertainty

Mortgage rates experienced a slight increase, rising to 6.65% for the week ending March 13, up from 6.63% the previous week, according to Freddie Mac. This marks the end of a seven-week decline in rates, which had peaked above 7% in mid-January. The increase is attributed to economic uncertainty and volatility caused by President Trump's tariff policies. Despite this, rates remain within a relatively narrow range compared to the previous year when they averaged 6.74%.

Uncertainty leaves rates stuck in a tight range

Mortgage rates increased amid economic uncertainty fueled by President Trump's trade policies, including new tariffs on Canadian steel and European wine. The tariffs have sparked fears of inflation, which could raise lending rates, and fears of a recession, which could lower them. Despite a stock market sell-off, bond prices did not rise significantly, limiting the impact on long-term borrowing rates. The Federal Reserve is expected to keep its benchmark rate unchanged at its upcoming meeting.

Realtor.com's weekly housing market update for the week ending March 8 revealed several key trends:

• Price Reductions: The share of homes with price reductions increased by 0.8 percentage points compared to the previous year, indicating that more sellers are adjusting prices to attract buyers.

• Median List Price: The median list price of homes was down 0.2% from the same week last year, marking the 41st consecutive week of either declining or stable listing prices annually.

• Home Size and Price per Square Foot: Controlling for home size, the median list price per square foot rose by 1.2% annually, suggesting that the typical size of homes on the market is decreasing.

Rising inventory gives buyers more options

New listings increased by 8.3% year-over-year, indicating sellers' growing confidence despite high mortgage rates. Active listings rose 27.8% from last year, marking 70 consecutive weeks of inventory growth. However, this rise is partly due to fewer active buyers, with homes spending four more days on the market compared to last year.

See full article: realtor.com