Tariffs Rattle Markets, Push Rates to 2025 Lows

Earlier last week, former President Donald Trump’s announcement of new tariffs sent a shockwave through global financial markets. In response, investors moved their money into safer assets like U.S. Treasury bonds—causing the 10-year yield to dip below 4% for the first time in six months. That drop pulled mortgage rates down with it.

This kind of movement isn't unusual. Mortgage rates tend to fall during times of economic uncertainty. But for real estate investors, the current environment is more than just interesting—it could be a strategic inflection point.

Recession Signals Are Strengthening

Following the tariff news, JPMorgan raised its global recession risk forecast from 40% to 60%. If the economy slows down or dips into recession, mortgage rates could fall even further.

However, that doesn’t mean this is a free-for-all. A recession can also hurt personal finances, decrease rental demand, and create cash flow challenges for leveraged investors. That’s why it’s critical to maintain a solid emergency fund—three to six months of living expenses—even if you’re eyeing a new property or considering refinancing.

Current Mortgage Rates Snapshot

Rates are already showing the effects of these economic ripples. Here’s where they stand now:

Mortgage Rates (as of April 7, 2025)

Information provided by Zillow. See more mortgage rates on Zillow.

The 30-year fixed-rate mortgage remains the most popular among buyers and investors due to its predictability and manageable monthly payments. However, the 15-year fixed offers significant interest savings for those who can handle higher monthly costs.

Current Refinance Rates

Refinancing rates are closely tracking purchase rates—meaning it could be the right time to restructure debt or boost cash flow.

Refinance Rates (as of April 7, 2025)

Information provided by Zillow. See more mortgage rates on Zillow.

Refinancing could be smart if you can cut your interest rate by at least 1%. But more importantly, you should calculate your break-even point.

Example: If refinancing costs $3,000 and saves you $200/month on your mortgage, it would take 15 months to break even. After that, the savings go straight to your bottom line.

Expert Insight: Should You Move Now?

Zillow data shows that 30-year fixed rates have slipped to 6.40%, down from 6.45% in March. The 15-year rate is around 5.80%, nearly flat compared to February’s 5.79%.

While these drops may seem small, even slight changes in mortgage rates can shift affordability or yield for investors by thousands over the life of a loan.

Many financial planners urge caution, especially in volatile markets. As always, the deal must make sense regardless of interest rates. Focus on fundamentals: cash flow, appreciation potential, tenant demand, and reserves.

Final Take: Play the Long Game

For real estate investors, the recent tariff-triggered rate drop is a signal—not just a savings opportunity. If you’ve been considering a property purchase or refinance, now might be the right time to act—but only if you’ve crunched the numbers and built in a margin of safety.

Lower rates make financing more attractive, but the broader economic uncertainty means the best investors will move carefully, not just quickly.

If you want to maximize your financial opportunities, now is the time to invest wisely. Partner with us to navigate the changing market and achieve your financial goals with expert guidance and tailored investment solutions. Contact us today to get started.