January 22, 2025

Mortgage rates are closely tied to the bond market, and bonds had a bit of clarity on Inauguration Day. Traders had been anticipating several executive orders, particularly around proposed tariffs. 📅

There’s a common belief (though not always accurate) that tariffs can drive inflation, and since inflation often leads to higher rates, there was some concern. However, the actual executive orders on tariffs were less aggressive than expected, focusing more on reviewing trade agreements and deficits rather than immediate action. This provided some relief to the bond market.

📉As a result, bonds held onto last week’s gains and even saw a little improvement today. That said, mortgage lenders didn’t rush to update rates, so the top-tier 30-year fixed rate stayed the same as it was last Friday.  Better yet, we saw a decrease of about 10 to 25 bps for all rates since last week at this same time.

Looking for more updates or have questions? Let’s chat! ☎️