Tariffs, Inflation & Rates — Oh My! How Global News Impacts Your Mortgage

Headlines about tariffs, inflation, and the Fed might seem distant — but they hit very close to home when you’re trying to lock a mortgage rate.

Here’s a quick breakdown:

Tariffs increase the cost of goods, which can drive inflation.

Inflation makes bonds less attractive, raising yields (and mortgage rates).

The Fed watches inflation and raises or lowers rates in response. Recent Fed meeting on 05/08/2025 Powell once again held rates steady because of Tariffs, even though we are making revenue and landed a huge trade deal with the UK.

All of these cause mortgage rates to swing. In May 2025, we’re seeing more volatility than ever due to global trade tensions and economic uncertainty. One week rates improve, the next they jump.

What does this mean for you? Waiting for rates to drop may not work. Locking in now — or using a tool like a 1-0 buydown — helps you hedge against uncertainty.

At Wiser Lending, we track these trends daily so our clients can act before the market shifts.

Want the best strategy in a shifting market? Let’s build your custom rate-lock plan. [Chat with a mortgage expert today.]