President Donald Trump’s fluctuating trade policies have brought a degree unpredictably to economic markets, with growing unease about the global outlook.

Volatility has defined the bond market in recent weeks. On April 2, mortgage rates hit a six-month low, only to surge to a six-week high just days later. Despite Trump’s vocal calls for the Federal Reserve to lower its benchmark interest rate, the Fed remains cautious, signaling no immediate intention to ease monetary policy.

Bottom line? Without long-term clarity on tariffs and inflation, uncertainty is all but certain. Economic unpredictability is becoming the new norm.

Anxiety over the rapidly changing economy and the rising chance of a recession could freeze the housing market. Homebuilders say tariffs will add nearly $11,000 in costs to the average new home. Builder sentiment remains subdued.

But it’s also possible the economic turmoil pushes down mortgage rates and encourages homebuyers and sellers to jump in. Many homeowners who have been considering selling are listing now – contributing to a 10.3% year-over-year increase in March housing inventory.

Amid the uncertainty, it's crucial for prospective homebuyers to remember the fundamentals. While tariffs, shifting global markets, and economic volatility can influence mortgage rates and consumer confidence, core homebuying principles remain unchanged. Staying focused and informed can help ensure sound financial decisions despite the ongoing noise.

Whether you’re a first-time buyer, moving up, or investing, your options are expanding. Bay Equity offers a wide range of home loan solutions tailored to fit your financial goals - no matter where the market takes you.

Staying financially grounded is more important than ever. Don’t react to every headline. Focus on long-term goals and make informed decisions based on fundamentals.