Mortgage rates are on the rise this week following concerns over inflation triggered by President Trump's tariff plans, causing market instability. The average 30-year mortgage rates were reported at 6.92% by Mortgage News Daily, increasing by 29 basis points from the previous week. Despite Trump's decision to delay tariffs on most countries, Zillow recorded them at 6.84%.

The tariff announcement last week disrupted the recent stability in mortgage rates, which had dropped alongside Treasury yields due to recession fears. However, this shift was short-lived as Treasury yields, closely linked to mortgage rates, fluctuated significantly, rising amid worries that tariffs might impact long-term foreign demand and lead to stagflation.

Kara Ng, a senior economist at Zillow Home Loans, highlighted the evolving economic scenario, making mortgage rate prediction challenging. Trump's attention to the bond market influenced his decision to temporarily suspend higher tariffs for most countries, acknowledging the market's impact on the economy.

While Treasury yields slightly decreased post-pause on higher tariffs, they remain higher at around 4.34%. Freddie Mac's mortgage rate survey showed fluctuations, with the average 30-year mortgage rate at 6.62%. Amid this uncertainty, mortgage broker Tim Stafford advised clients to secure their rates to mitigate risks, emphasizing the unpredictability of the current market conditions.