T
he turbulent economic landscape is creating a paradoxical situation for mortgage brokers - they're bracing for a surge in demand. "We're on the cusp of a mortgage rate free fall," says Melissa Cohn, regional vice president of William Raveis Mortgage, who's weathered 43 years of market fluctuations. The recent tariffs have sent shockwaves through the equity markets and bond yields, causing mortgage rates to plummet.

    While lower rates are music to real estate enthusiasts' ears, Cohn cautions that this silver lining has a dark cloud - rising inflation. As consumers face higher costs for goods, their purchasing power will dwindle, potentially reversing the rate drop. Moreover, with investors nursing losses in the equities market, "people will be hesitant to tap into their assets," she notes.

    The current 30-year fixed mortgage interest rate stands at 6.65%, a nine-basis-point dip from last week's average, according to Bankrate. Cohn wryly observes that her business is thriving despite the economic uncertainty: "It's a good day for my clients, but not so much for my brokerage account." However, Dan Richards, president of Flyhomes Mortgage, warns that mortgage rates may not plummet as dramatically as other markets, potentially keeping buyers at bay.