Federal Reserve Archives | Maor Max Lavi - Superior Mortgage Lending

Will Tariffs Raise Mortgage Rates? The 2025 Housing Market Breakdown

If you’re wondering why mortgage rates seem to keep climbing, and if more tariffs raise mortgage rates, you’re not alone. In 2025, mortgage rates have hit around 6.81% for a 30-year fixed loan (source), and you might be thinking, “What did I miss?” The answer is a little more complicated than just tariffs – But yes, they’re still a big part of the equation.

Mortgage trends this year are shaping up to be a wild mix of the expected, the hopeful, and the “why is this happening?” Whether you’re buying your first home, refinancing, or just mortgage-curious, staying informed is your best bet. Here’s what you can expect.

Interest Rates and Inflation Impact the Housing Market and Labor Costs

Let’s break down the love-hate relationship between interest rates and inflation. It’s a big deal for anyone who cares about money, from the Federal Reserve to the average person looking at mortgage rates. Here’s how these two frenemies affect each other and why central banks keep such a close eye on them.