Tariffs, Volatility, Politics: How These Affect Your Mortgage

Craig Andriulli, April 25, 2025

There’s been a whirlwind of economic and political news since the start of the year—so

much so that even seasoned market experts are struggling to keep pace. For everyday

buyers, making a major financial decision like purchasing a home in this kind of

environment can feel overwhelming. Here’s a breakdown of how key factors—tariffs,

market volatility, and politics—are shaping the mortgage landscape and what you can do to navigate it confidently.

How Tariffs Impact Mortgage Rates: Understanding the Ripple Effect

No matter where you stand politically, tariffs are currently a major lever being used by the administration—and they’re having real market consequences. The mere threat of tariffs has injected uncertainty into both the stock and bond markets. One example is the recent uptick in yields on 10-year U.S. Treasury bonds, which has partly been fueled by foreign nations selling off U.S. debt in retaliation.

Conversely, yields on shorter-term bonds like the 2- and 5-year Treasuries have dropped, reflecting fears of a short-term recession. While this may sound like financial jargon, the bottom line is simple: when Treasury yields swing, mortgage rates swing right along with them. Because mortgage rates are heavily influenced by the 10-year Treasury, they can shift suddenly and significantly based on global moves and domestic policy.

Navigating Market Volatility: How Economic Shifts Impact Housing Decisions

Market volatility can be a double-edged sword. For some, it brings opportunity. For others, uncertainty. Recently, large swings in the markets have forced both businesses and individuals to pause and reassess. Companies are adjusting growth forecasts, and

households are tightening budgets.

This cautious mindset has rippled into the housing market. We’re seeing high-end

properties staying on the market longer and a notable dip in mortgage application volume compared to previous months. Volatility affects more than stocks—it influences confidence, planning, and ultimately, decisions like whether or not to buy a home.

Politics and Policy: How Shifts in Washington Shape Your Mortgage Options

Let’s face it—politics feels like a four-letter word these days. But regardless of which side of the aisle you lean toward, political decisions have tangible effects on personal finance. Changes in administration bring policy shifts that directly impact banking regulations, lending criteria, and interest rate movements.

Recently, we've already seen the impact of new policy directions from HUD, Fannie Mae,

and Freddie Mac. These institutions shape the backbone of U.S. mortgage guidelines, and even subtle changes in their rules can make it either easier or harder to qualify for a

mortgage.

Cut Through the Noise: Focus on What You Can Control 

If you’ve made it this far—thank you. My honest take on all of this? Don’t panic. Whether it’s tariffs, market swings, or political shakeups stealing the headlines, the smartest way to cut through the noise is to stay grounded in your own financial reality.

If you’re considering buying a home, start with your budget. A payment-focused

approach—where you base your search on what comfortably fits into your monthly

finances—can help reduce stress and build confidence. A solid understanding of your post-tax income and fixed expenses (housing, food, savings, lifestyle) creates a clear path forward.

People often ask me, “Is now a good time to buy a home?” My first response is always: “Have you done a budget?” I'm surprised by how many people have never been guided through a true financial self-assessment. Without that, it’s difficult to know what you can realistically and comfortably afford.

Once your budget is set, you’ll find it much easier to filter out distractions and focus on

homes that fit your financial plan—not just your wish list. That’s why my answer to that

age-old question is always the same: If it fits your budget, then yes—it’s the right time to

buy.

Final Thoughts

While headlines about tariffs, volatility, and politics may feel unsettling, they don’t have to derail your homeownership goals. Staying focused on your personal finances is the best way to insulate yourself from external chaos.

As a mortgage originator, I’d love to see rates go lower—but opportunities exist in every

market. Higher rates have boosted savings account returns. Volatility can create unique

entry points. And political shifts, for better or worse, often open new doors.

In every market, one truth remains: a budget-based home search will never lead you astray.