"Tariff Uncertainty..." U.S. Mortgage Rates Fall Below 6%

Falling Below 6% for the First Time in 4 Years
Bond Yields Drop on Tariff Uncertainty

Due to uncertainty surrounding the tariff policy of the Donald Trump administration in the United States, bond yields have fallen, pushing the average U.S. mortgage rate below 6%.

According to daily data from Mortgage News Daily cited by CNBC on the 23rd (local time), the average rate on 30-year U.S. home mortgages fell to 5.99% that day. CNBC reported that this is the first time since 2022 that the 30-year U.S. mortgage rate has fallen below 6%.

The U.S. Supreme Court’s ruling that the Trump administration’s reciprocal tariffs were illegal has reignited uncertainty over tariff policy, increasing risk-off sentiment and driving bond yields lower.

The weaker-than-expected U.S. economic growth rate for the fourth quarter of last year, announced on the 20th, also contributed to the decline in bond yields, coming in at an annualized 1.4% from the previous quarter.

President Trump, ahead of the midterm elections in November, is also making efforts to lower mortgage rates, including signaling plans for large-scale purchases of mortgage-backed securities (MBS).