Rates for home loans hovered in the same range they’ve been stuck in for a while, even as big economic forces rocked the housing market.
In the week ending May 8, 30-year fixed-rate mortgages averaged 6.76%, Freddie Mac announced. That’s unchanged from last week and almost the exact same level that the popular product has averaged so far in 2025.
Those figures don’t include fees or points, and rates in some parts of the country may be higher or lower than the national average.
Mortgage rates may be having less of an effect on the housing market than other dynamics – namely the White House’s chaotic trade policy roll-out – right now.
Home contract signings were strong in March, the National Association of Realtors said last week. Since contracts are signed several weeks before closings, sales numbers in April and May could continue to hold up. But housing observers are more concerned about contracts from April, when tariff announcements started to shock markets – and consumers.
Jeff Lichtenstein is the owner and broker of Echo Fine Properties in South Florida. Lichtenstein noticed a dramatic change in activity in mid-April, when the White House made its announcements and financial markets cratered. He hears a similar story from counterparts across Florida, and says he expects his May sales figures to be sharply lower than the same period in the past several years.
More concerning, Lichtenstein said, is that the worst might be yet to come. Among other things, cross-border animosity might dampen the enthusiasm of Canadian “snowbirds” who have traditionally been a big part of Florida’s housing scene.
And American consumers might also decide to withdraw, Lichtenstein told USA TODAY.
“I think it’s hit Wall Street, but it hasn’t hit Main Street yet,” he said. “And I think once it hits Main Street and, you know, that $69 dress is now $82 at Walmart, and you know, the car is $5000 more expensive, that’s where reality starts to set in.”
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This article originally appeared on USA TODAY: Mortgage rates steady as trade war freezes housing market
