The Trump administration's rollout of its new reciprocal tariff policy on Wednesday may hinder prospective buyers from purchasing a home, The Washington Post reported.
In recent years, home loan rates have dropped slightly, the Post reported. A year ago, the average 30-year fixed mortgage rate was 6.82%; that figure dipped to 6.6% as of Thursday, according to national mortgage giant Freddie Mac.
But as mortgage rates see a slight decrease, home prices remain as high as ever, and according to sources who spoke with the Post, it could mean little relief for prospective homebuyers.
"Mortgage rates are currently lower than they were, and are at the lowest point of this year," John Cain, director of secondary marketing at KeyBank, told the Post. "But as far as rates going substantially lower, it's too early to tell."
Cain said that while the tariffs wouldn't "directly" affect mortgage rates, a volatile economy would.
Jim Tobin, CEO of the National Association of Home Builders, said tariffs on China, upon which the United States is dependent for many goods, could mean a rise in home prices.
"We expect that there will be widespread impacts because of these tariffs," Tobin ssaid. Early estimates indicate costs of a new home could increase by $7,500 to $10,000, he added.
Another factor to consider, according to Greg McBride, chief financial analyst for Bankrate.com, is that with fewer homes being built, the demand and prices for homes are expected to increase.
Nick Koutsobinas ✉
Nick Koutsobinas, a Newsmax writer, has years of news reporting experience. A graduate from Missouri State University’s philosophy program, he focuses on exposing corruption and censorship.
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