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.

The average contract rate on a 30-year fixed-rate mortgage fell 9 basis points in the week ended April 4, the Mortgage Bankers Association said on Wednesday. Mortgage applications increased by 20% to the highest level since September.

Mortgage rates closely track the 10-year Treasury note yield, which ended last week at a six-month low as investors fearful of a tariff-induced recession fled to the safety of U.S. government bonds.

"Both homebuyers and refinance borrowers were quick to take advantage of this dip in rates," MBA deputy chief economist Joel Kan said.

The reprieve for homebuyers may be short-lived.

Federal Reserve policymakers, who control short-term interest rates, have signaled they are in no rush to cut them, given the general strength of the economy, the potential for tariffs to boost inflation, and the uncertainty over trade negotiations and other developments that could change where tariffs eventually settle.