Mortgage rates are likely to rise modestly in April due to uncertainty surrounding tariffs and their impact on the economy. The Trump administration’s plan to impose higher tariffs on imports from major trading partners has created uncertainty, making it tough to predict mortgage rates. The potential for higher tariffs to raise inflation and reduce economic growth is a concern for economists.
Higher tariffs could lead to an increase in prices for US businesses and consumers, which would eventually influence mortgage rates. It is estimated that tariffs could add one percentage point to the inflation rate, potentially causing mortgage rates to rise as well.
Despite the uncertainty, experts advise buyers and sellers to act based on their personal circumstances rather than trying to time the market based on predictions about mortgage rate movements. Mortgage rates have already risen since September, with rates peaking around the time of the presidential inauguration.
While some forecasters predict a decrease in mortgage rates in the first three months of 2026, others expect rates to remain around 6.5% for the rest of the year. The unpredictability of tariff policies makes it difficult to accurately forecast mortgage rate movements.
In conclusion, it is important for homebuyers to seize opportunities for low mortgage rates when they arise rather than waiting for a sustained drop. The current economic climate calls for a cautious approach when predicting future mortgage rate changes.
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