The interest rate for the most popular U.S. home loan dropped to 6.61% last week, the lowest rate since October, giving a boost to mortgage applications even as global stocks tumbled in the wake of President Donald Trump's decision to impose sweeping tariffs on trading partners the world over.

A growing number of UK lenders are cutting mortgage rates as the fallout from US tariffs continues to fuel forecasts of deeper than expected interest rate cuts. Coventry Building Society became the largest mortgage provider to cut its two-year fixed rate to below 4% on Wednesday as several others also cut rates.

One broker said tariffs chaos had created a 'golden window of opportunity' for homeowners to secure a cheaper mortgage.