If you’ve been keeping an eye on the housing market, you may have noticed something interesting — mortgage rates just dipped again. So what’s behind the drop? According to our lending partner Brooks Kelly at The Mortgage Link, it all comes down to a shift in investor behavior following the announcement of new tariffs.
Whenever uncertainty strikes the stock market, investors often move their money into safer assets like bonds — a concept known as a “flight to quality.” Since bonds are what back up mortgage rates, this increased demand causes rates to drop. It’s simple supply and demand economics.
As of now, we’re seeing conventional loan rates around 6.125% with minimal costs, and even as low as 5.99% with a point paid. Not bad at all for spring buyers looking to lock something in.
The current consensus is that this downward trend will likely continue until there’s more clarity around the tariffs and how they’ll impact the broader economy. So, if you’re thinking of buying (or even refinancing), now might be the time to get pre-approved while the market is leaning in your favor.
For the latest updates or to explore your options, reach out to Brooks Kelly with The Mortgage Link — your trusted resource for all things lending.
