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Published: Mar 15, 2023 6 min read
House On Top Of An Silicon Valley Bank Sign That Is Sinking Into The Ocean
Money; Shutterstock

News of the recent Silicon Valley Bank and Signature Bank collapses have sparked fears that a string of similar failures may be forthcoming. But there could be a silver lining for potential homebuyers, as the upheaval caused by the banks’ implosion could cause a shift in mortgage rate trends.

The bank failures have “introduced a whole new level of uncertainty into the economy,” Lisa Sturtevant, chief economist at real estate firm Bright MLS, said in an emailed statement.

That uncertainty could affect mortgage rates in one of two ways.

Mortgage rates could fall, depending on the Fed

On the one hand, a perceived weakness in the financial sectors could cause the Federal Reserve to alter its monetary policy in regard to inflation.