03:58 PM EDT, 04/10/2025 (MT Newswires) -- US President Donald Trump's tariff policy, rising mortgage rates and concerns about a potential recession could hurt home sales, Redfin (RDFN) said Thursday.

Mortgage rates have soared from last week's six-month low to a six-week high of 6.95% on Wednesday due to an anticipated economic fallout from a trade war and the Federal Reserve signaling it won't cut interest rates more than previously expected.

"The housing market is under pressure as prospective homebuyers and sellers navigate a rapidly shifting economic landscape, with (Trump's) tariff policy, a volatile stock market and increased chances of a recession exacerbating widespread financial uncertainty," Redfin said in a report.

On Wednesday, Trump paused for a 90-day period certain new tariffs for countries that have not retaliated against the US, while subjecting China to higher duties following countermeasures by Beijing. The tariff rate on Chinese imports now effectively amounts to 145%, CNBC reported Thursday, citing a White House official.

The Mortgage Bankers Association said Wednesday that mortgage applications soared to their highest level since September 2024 last week as heightened economic uncertainty pushed interest rates lower. However, Redfin does not expect the improvement in demand to sustain.

The median monthly mortgage payment soared to an all-time high of $2,813 in the four weeks ended April 6, and payments are likely to rise further in the coming weeks, Redfin said.

"The only thing that's certain about mortgage rates and the housing market right now is extreme uncertainty," said Redfin Economic Research Lead Chen Zhao. "With the White House going back and forth on tariffs, sending markets and rates reeling, Americans are feeling uneasy about their money."

Pending home sales posted their smallest annual decline since the start of 2025 even as new listings are about 10% higher year over year, the report showed. Median sale price in the four-week period to April 6 rose 2.5% annually to $386,500, which Redfin said was the smallest increase since October 2023.

"Supply is up partly because many homeowners who have been considering selling are listing now, in hopes that they're able to pocket their equity before a potential economic downturn," it said.

Price: 8.25, Change: -0.58, Percent Change: -6.57