Media often has problems stating the obvious, but CNN has no difficulty placing blame for spiking mortgage rates: "President Donald Trump's scattered approach to tariffs and an escalating trade war with China."
The average rate on a standard, 30-year fixed mortgage was 6.83% in the week ending April 17, up from 6.62% a week ago, mortgage financing provider Freddie Mac said Thursday. That's the largest one-week jump in mortgage rates in nearly a year.
Others report mortgage rates exceeding the 7.1% peak during Joe Biden's administration, before inflation eased toward the end.
On Friday, another monthly report on consumer sentiment came in substantially lower than expected. The expectation for inflation jumped from 5% in March to 6.7% in April, the highest level since 1981. All of this comes right in the heart of the all-important spring housing market. For most consumers, a home is their single largest investment. "Forget about housing in this environment, with mortgage rates back up, consumers certainly concerned about the job market, housing will also be on the weak side," said Nancy Lazar, chief global economist at Piper Sandler, on CNBC's "The Exchange" on Friday.
Trump blames Federal Reserve chairman Jerome Powell, who he does not have the formal power to fire and has not dared to try and fire extralegally.
A senior White House official later told CNBC that Trump's broadside should not be seen as a threat to fire Powell, and that there are no plans being made to end his term early.
Powell has previously said the president does not have the power to fire him.
"I have tangled with [Powell] on a regular basis about both regulations and interest rates," [U.S. Senator Elizabeth] Warren acknowledged in her remarks at the New York Stock Exchange.
"But understand this: If Chairman Powell can be fired by the president of the United States, it will crash markets in the United States," she said.
Previously:
• Trump's tariffs finally makes sense: Ruble soars past dollar
• Nintendo could drop Switch 2 price
• Ferris Bueller's teacher schools Trump on tariffs
