The 30-year mortgage rate has reached its lowest level since October amidst the chaos of the trade war. However, this decrease may be temporary if tariffs lead to inflation, causing rates to rise again. Tariffs could also impact buyer sentiment negatively and raise the costs of new homes by up to $9,200.

President Trump's recent tariff actions have caused turmoil in the markets, but there is a potential positive outcome for homebuyers: a decline in borrowing costs. Mortgage rates hit a six-month low last Friday, removing a significant barrier for potential homebuyers in the US.

Due to Trump's unexpected tariffs, investors sought safety in Treasury bonds, reducing yields and subsequently lowering mortgage rates. While this development may seem favorable for buyers in an expensive housing market, it could be short-lived if tariffs disrupt supply chains and drive inflation, leading to increased interest rates and bond yields.

The ongoing trade war poses a risk to buyers, with potential impacts on market conditions. Recent tariffs are anticipated to raise the average home cost by $9,200, as per the National Association of Home Builders survey, with around 7.3% of goods needed in residential construction imported into the US in 2024.