Playing mortgage roulette in a volatile market

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Published Date 4/14/2025

It’s anyone’s gamble where mortgage rates are concerned. Economic uncertainty rattled the industry this past week—and whatever rates you heard about for the week may not show the full picture, according to economists as reported by Realtor Magazine’s Melissa Dittmann Tracey.

“The 30-year fixed-rate mortgage has been on a roller coaster ride this week,” says the NAR’s chief economist Jessica Lautz. “The bond market is reacting in real time to real-time decisions.”

Tracey relays how last week had it all: global tariff spats, stock market volatility, and news on Thursday of slightly easing inflation. And the Consumer Price Index fell to 2.4% in March—the lowest level since September.

“There’s so much uncertainty and so much disruption; things can quickly change,” Lawrence Yun, NAR’s chief economist at a broker summit in Louisville.

Bet on it. This market volatility is going to leave a mark according to the Mortgage News Daily. “It results in lenders being unable to perfectly keep pace with the underlying bond market,” its analysts say. “The more volatile the trading, the more it costs a mortgage lender to be able to offer any given rate.”

Some home shoppers jumped at the lower rates, helping to fuel an uptick in mortgage applications for home purchases—a gauge of future home buying activity. “Applications climbed 9% week-over-week and 24% year-over-year, the Mortgage Bankers Association reported on Wednesday the highest level in purchase demand since January 2024, a budding sign of hope for the housing market this spring,” says Tracey.

With all this uncertainty, ready home buyers should stay in close contact to find the perfect home and lock in the lowest rate amid daily changes, according to these experts. “Lower mortgage rates will be key to getting the housing market moving,” said Yun. “Once conditions improve for mortgage rates and inventory,” pent-up demand will be unleashed in home sales, he added.

RealtorMag, TBWS

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