03/29/2025
MORTGAGE UPDATE: here’s a quick Saturday update. The mortgage market has been a bit of a rollercoaster this week, so Mike has shared a few highlights with us.
📉 Mortgage Market Reacts to Tariff Uncertainty
April 2nd was set to be the day for President Trump’s tariffs to take effect, but after a Cabinet meeting on Monday, Trump stated that he “may give a lot of countries breaks.” This caused investors to move funds from safe haven bonds to stocks, leading to an increase in mortgage rates throughout the week... until Friday came along.
📊 Inflation & Consumer Spending Update
Friday’s release of the personal consumption expenditures (PCE) price index showed that core inflation rose 2.8% in February, slightly above expectations. Consumer spending came in at 0.4% for the month, below the 0.5% forecast. A slightly hot inflation reading would typically push mortgage rates upward, but instead, the 10-year Treasury dropped 12 basis points, marking one of the best days for bonds over the last few weeks.
📈 Pending Home Sales Increase
Pending home sales rose 2.0% in February, according to the National Association of REALTORS®. Gains were strongest in the South and Midwest, while the Northeast and West saw declines. Year-over-year, contract signings remain down across all regions. NAR’s Chief Economist Lawrence Yun noted that a meaningful decline in mortgage rates could boost both demand and supply, making homeownership more affordable and reducing the rate lock-in effect.
If you need help with a pre-approval this weekend, call or text Mike Casher at 813.522.6448. 📱
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