Federal Reserve Chairman Jerome Powell held steady on the fed funds rate Wednesday, citing uncertainty in the economy related to tariffs. The Fed expects growth of the economy to slow this year this year and expects the unemployment rate and inflation to tick up a bit higher.
Tariffs can definitely have an impact on the cost of new construction, driving up the cost of new homes. The United States imports about 30% of its lumber from Canada. Tariffs can also trigger a slow-down of the U.S. economy. A slowdown in the U.S. economy along with an increase in unemployment could actually drive down the yield on 10-year treasury notes which in turn would bring down mortgage rates, stimulating existing home sales.
Little Movement
in Mortgage Rates
The 30-year fixed-rate mortgage has stayed under 7% for nine consecutive weeks, which is helpful for potential buyers and sellers alike.
