#tariffsimpact

April 14, 2025

With today’s global economic shifts causing market fluctuations on a near-daily basis, it’s no wonder homebuyers and investors are asking: How do tariffs and trade uncertainty impact real estate and mortgages?

As a mortgage advisor working with clients from all walks of life, I’ve been closely tracking these developments to help guide informed, confident decision-making.

The reality is this: prolonged uncertainty—especially from drawn-out tariff discussions—tends to stall markets. It creates hesitation and a more cautious investment environment.

Let’s unpack what this means for you as a buyer or investor.

What’s Inside:

The Link Between Tariffs and Mortgage Rates

Consumer Confidence: A Key Driver in Real Estate

The True Cost of “Waiting It Out”

Focusing on What You Can Control

A Look Ahead: Real Estate Beyond Tariffs

Final Thoughts & How I Can Help

1. Tariffs & Mortgage Rates: What’s the Connection?

The influence of tariffs on mortgage rates isn’t always direct—but perception plays a big role.

When uncertainty clouds global markets, investors often pull back from equities in favor of safer bets like bonds. As bond prices rise, interest rates often drop—since rates and bond prices move inversely.

That said, market timing is unpredictable. For instance, when the U.S. eased tariffs for countries excluding China, we saw an unprecedented $4 trillion flood into the stock market in one day.

This kind of response shows just how quickly investor sentiment—and mortgage rates—can shift based on policy news.

2. Consumer Confidence: The Real Estate Accelerator

In real estate, consumer confidence is everything.

If people feel uneasy about their job, finances, or the broader economy, they’re less likely to make big decisions—like buying a home.

Ongoing trade disputes and shifting tariffs have a tendency to fuel this uncertainty, causing many to hit pause.

Still, it’s important to recognize: real estate continues to be one of the most effective paths to long-term wealth. Historically, homeowners consistently hold more wealth than renters—and that trend isn’t likely to change any time soon.

3. The Cost of Waiting: What Are You Really Losing?

I often talk with clients about the cost of waiting. This isn’t about pushing anyone into a rushed decision—it’s about understanding the financial trade-offs of postponing a purchase.

For example, during the hot market of 2020–2021, many first-time buyers opted to wait, expecting prices to drop. In reality, they missed out on 4% mortgage rates and now face homes that are roughly 40% more expensive.

Buying now might not be ideal for everyone—but for those who are financially ready, it could be a wise move. Here’s why:

You start building equity immediately

Real estate has a long history of appreciation

Loan balances decrease over time with each payment

Refinancing is an option if rates fall later

4. Focus on What You Can Control

It’s easy to feel overwhelmed by the macroeconomics of tariffs and global policy. But the truth is, most of it is out of our hands.

What you can control is your own financial strategy. That means:

Staying disciplined with saving and budgeting

Strengthening your credit profile

Educating yourself on the market

Preparing smartly for the purchase process

This approach isn’t about ignoring economic headlines—it’s about staying grounded in your own goals, regardless of the noise.

5. Looking Past the Politics: Real Estate Is Resilient

Trade disputes, inflation, and market corrections are part of the economic cycle. What history tells us, though, is that real estate tends to bounce back—often stronger—after periods of volatility.

From the 2008 recession to the early-pandemic market freeze, housing has proven itself to be a long-term winner. While no one can time the market perfectly, staying informed helps you make decisions that align with your financial well-being.

Final Thoughts: It’s About Options, Not Pressure

Everyone’s situation is different. For some, buying now—even with higher rates—makes sense. For others, waiting could be the smarter move.

Here’s what matters:

Buying now could mean locking in current prices and building equity sooner. If rates fall later, refinancing is an option.

Waiting might yield lower rates—but you risk rising prices or increased competition.

I’m here to help you weigh these options—not to push an agenda, but to offer clarity.

Ready to Talk?

Whether you're trying to make sense of today’s market or you're thinking of starting an application, I’m here to help. Let's talk through your goals and find the path that fits you best.

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