Tariffs

Many clients have asked me how tariffs could impact mortgage interest rates. The threat of various tariffs by the US administration has ignited fears of trade wars and sparked widespread economic uncertainty. Stocks have experienced heavy selling pressure due to inflation fears as the price of materials will likely increase. The bond market, which impacts mortgage interest rates, has not escaped the volatility either.

Impact on Mortgage Rates

The outcome hinges on several variables: the scale and duration of the tariffs, whether they escalate into a broader trade war, and how central banks prioritize inflation versus growth. Some analysts suggest that if tariffs are used as a negotiating tactic and quickly scaled back, their impact might be minimal, allowing rates to stabilize or even decline. For now, homebuyers face a challenging mortgage rate environment.

Homebuying 101 Seminar

Our Homebuying 101 seminar last week was a huge success. If you missed it, we are adding a virtual version to our calendar on May 5 from 6 to 6:45pm. Please contact me for the Zoom link.