The financial markets and mortgage rates have experienced significant volatility over the past year. A quick glance at the 30-Year Fixed Mortgage chart reveals a fluctuation of approximately 1.5%—with current rates sitting in the middle of this range. Recent Consumer Price Index (CPI) data indicates a lower inflation rate, which is typically favorable for bonds and mortgage rates. However, these figures do not yet reflect the potential impact of tariffs or recent government layoffs.
Over the past month, economic uncertainties stemming from tariffs and federal workforce reductions have had conflicting effects on interest rates. On one hand, a slowing economy due to these factors can exert downward pressure on rates, making borrowing more affordable. On the other hand, tariffs impose higher costs on businesses and consumers, which can drive inflation upward—bad news for interest rates.
In the long term, efforts to reduce the federal deficit could be beneficial for interest rates. However, with the national debt currently at $36 trillion and $881 Billion in 2024 debt servicing costs, is projected to reach $1 Trillion in 2025, sustainability remains a pressing concern. While fiscal discipline is essential, the question remains: at what cost?
With so many dynamic and interdependent economic forces at play, market watchers must remain vigilant. For now, mortgage rates remain relatively favorable, hovering in the mid-6% range. Borrowers and investors alike should stay informed as new economic developments unfold.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – Southland Regional Association of Realtors (2025)
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
Leave a Reply