🏁 RSL Weekend Edition: How Low Can Mortgage Rates Go with All This Drama?

Rates are falling, but for how long?

Mortgage rates have been drifting lower since January 14th, defying expectations that inflation and trade tensions would send them higher. So far, that unexpected drop has been a tailwind for homebuyers — purchase application data is showing encouraging strength as we sprint toward the end of March.

But here’s the twist: A packed news week could shake things up again.

President Trump has dubbed April 2nd "Liberation Day," referencing pending tariff actions — a move that could influence economic sentiment and potentially mortgage rates. Add to that a trio of market-moving ingredients: new job data, consumer confidence reports, and several Fed speeches. With all that momentum on the track, we have to ask...

How much lower can rates really go?

Let’s break it down, RSL-style 🏁

📉 10-Year Yield & Mortgage Rate Watch

In ReadySetLoan’s 2025 forecast, we’ve highlighted the following key ranges:

Mortgage Rates: 5.75% – 7.25%
10-Year Treasury Yield: 3.80% – 4.70%

This past Friday, we saw inflation data come in slightly hotter than expected. Ordinarily, that would nudge rates upward. But instead, markets reacted to deeper concerns — yields dropped, stocks slipped, and mortgage rates followed suit.

So, what’s the deal?

📉 Consumer sentiment is taking a nosedive.🛒 Spending figures are underperforming.⚠️ Trade war anxiety is spooking both consumers and investors.

The result? Even in the face of stubborn inflation, the growing unease about job security and economic stability is pushing investors into safer assets — a move that tends to benefit mortgage rates.

🐷 RSL Piggy Points

🐷 Labor over inflation. When analyzing mortgage rates, jobs data tends to matter more than short-term price changes. Weak employment = lower rates.
🐷 The Fed has a mic this week. Multiple speeches from central bank officials could influence investor expectations and mortgage pricing.
🐷 Tariffs = wild card. April 2 could mark a turning point if policy shifts spark fear or optimism in the market.

🏁 The RSL Perspective

At ReadySetLoan, we’re watching this race closely. While it’s tempting to hope for even lower rates, borrowers should approach this moment strategically. If you're on the sidelines, now may be your chance to lock in before volatility rears its head again.

Our team is here to help you navigate the finish line — whether you’re purchasing your first home or considering a smart refinance.

📞 Ready to Take the Next Step?

Don’t let market drama stall your homeownership journey. Talk to the experts at ReadySetLoan — your partner, coach, and cheer squad in the mortgage race.

860-985-6266