Mortgage rates

The Dow Jones Industrial Average dropped over 2,200 on Friday, the second day of a sell-off due to tariffs, but that could be good for mortgage rates.

Even with 4,000 public sector cuts, total employment numbers were surprisingly high, which raises questions about whether financing costs will keep falling.

Lumber retains protections for now, but construction stocks still fell, and while the initial market reaction lowered rates, there could later be a reversal.

While prices are still rising, an increase in reductions from listing suggests sellers are adjusting to the new reality for home buying this season.

Mortgage rates remain in the 6.6% range, with the tariff news so far having little impact, but could change given the 35 basis point drop in the 10-year yield.

In all, 42% of sales in the borough were financed, a larger share than in many recent quarters in the cash-heavy Manhattan market.

Fannie Mae increased its mortgage volume and home sales predictions, but that comes from cutting its forecasts for U.S. gross domestic product growth in 2025.

Uncertainty is ruling the markets that are used to set mortgage rates and as a result, they remained in the same tight range since the start of the month.

Bostic now sees price growth returning to the Fed's 2% goal at some point in early 2027.

The Fed's wait-and-see approach on what will happen to the U.S. economy, while not directly impacting mortgages, will likely keep those rates elevated.