Tariffs & the Bond Market: A Love-Hate Story

Ah, tariffs. The economic plot twist no one asked for but everyone feels. Every time a new tariff is slapped on, Wall Street collectively holds its breath while the bond market says, “Well, guess we’re the safe one again.”

When tariffs rattle the economy, investors get nervous—and nervous money doesn’t like risk. So where does it go? Right into the loving, yield-y arms of the bond market. As demand for bonds rises, yields drop… and when yields drop, mortgage rates tend to follow.

So yes, while tariffs might be a gut punch to the stock market (and your retirement account), they often hand out a consolation prize to borrowers: lower mortgage rates. Bitter? A little. Helpful for refinancers and buyers? You bet.

It’s a strange relationship—tariffs stir chaos, bonds catch the fallout, and mortgage rates quietly smile in the corner.