“I think it’s going to slow down demand and I can’t imagine it’s going to cause [mortgage rates] to go lower,” Taylor said. “The threat of inflation is going to be looming because of higher prices and so, it seems to me that everything’s going to be in chaos and it’s got to adjust.
The average 30-year mortgage rate in the US fell to 6.85%, the lowest since late December. Freddie Mac reports this as a boost for homebuyers, despite high home prices. https://t.co/Hi239i2XDJ#MortgageRates #Homebuyers #RealEstate
— Mortgage Professional America Magazine (@MPAMagazineUS) February 21, 2025
“We’re looking at probably higher mortgage rates in the short term because of that inflation… and then I think demand is going to be soft, supply is going to be disrupted, and eventually we’ll get into a smoother transition. But I would say some market chaos as this thing unfolds [is coming].”
While the tariffs are partly intended to bring companies back to the US and encourage keeping jobs local, it remains to be seen whether the US construction industry can swiftly pivot to domestic lumber production and supply if those levies come into play.
“Can the US increase production marginally? Yes, but they don’t have a lot of surplus skilled workers,” Taylor said. “They have to get extra capacity for logging and logging trucks. So that’s all going to take time and they won’t be able to respond very quickly – and they won’t be able to respond until they know if the tariffs are in or out. So it’s just chaos – like nothing I’ve ever seen in my career.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
Publisher: Source link
