Could Trump’s proposed tariffs be the reason for the recent rise in mortgage rates? Could this slow the housing market and cause affordability to get worse? What happens if rates stay higher for longer and more homebuyers get kicked out of the market? We’re talking to Redfin’s Chen Zhao about how tariffs will affect you and the surprising findings from a new homeowner survey foreshadowing something none of us wanted to see about housing inventory.
Tariffs could change many things: they could increase construction costs for houses, lead to higher inflation and higher mortgage rates, or put jobs back into American communities. Does the market believe the Trump administration will go forward with their flat tariff for most countries? Or will they pick and choose specific exporters within specific countries to tack a tariff onto?
Plus, why are sixty percent of homeowners planning NOT to sell their homes in the near future or…ever? If higher mortgage rates remain, will all those homeowners with low mortgage rates stay put without downsizing or moving, locking up housing inventory tighter than it currently is? It’s possible, potentially leading to long-term declines in real estate prices. But don’t worry, Chen breaks down the entire timeline.
Dave:
A fear of tariffs is driving up mortgage rates right now and slowing down the market. Today. We’re uncovering how and why tariffs are playing such a big role in the housing market right now and why some forecast for 2025, including my own might already be wrong. Joining me to talk about all this is Redfin’s, chief economist Chen Zhao, who is going to help us understand this whole situation with tariffs and share some insights into why all this stuff that President Trump has been talking about is spilling over into mortgage rates and subsequently into the housing market. Plus she’s going to share with us a pretty crazy new survey. It was shocking to me showing that a third of homeowners played to never sell…