The U.S. real estate market in 2025 is experiencing significant volatility due to recent policy shifts and economic factors. President Trump's announcement of tariffs on imports from Canada, Mexico, and China in early February, followed by a temporary pause for Canada and Mexico, has created uncertainty in the housing market.
Impact of Tariffs on Housing
The potential implementation of tariffs could lead to:
- Increased construction costs due to higher prices for imported building materials.
- Rising home prices as builders pass on additional expenses to consumers.
- Possible supply-chain disruptions and construction delays.
Economic Implication
If seen through, tariffs are expected to have broader economic impacts that will indirectly affect the real estate market due to inflationary pressures. The tariffs may contribute to inflation, potentially leading to higher interest rates for an extended period.
Mortgage Rates and Housing Market Activity
- On January 29, 2025, the Federal Reserve decided to maintain the target range for the federal funds rate. This decision reflects the Fed's ongoing concern about inflation, which remains somewhat elevated despite recent progress.
- According to Forbes, markets currently see a possibility that short-term interest rates may not decline in 2025 at all, with a small chance they could even rise. The recent announcement of tariffs on imports from China, Canada, and Mexico could complicate the Fed's decision-making process.
- These (potential) tariffs may lead to increased prices, potentially making it more difficult for the Fed to achieve its 2% inflation target.
Switching Domiciles and in the Market? Strategies for Your Relocation
- Start your search early: Begin monitoring your target market now to understand trends and pricing. Touch base with a reputable realtor.
- Get pre-approved: With mortgage rates still high, securing a pre-approval a couple months before planning to move will give you a clear budget and make you a more competitive buyer.
- Act decisively: With sales potentially projected to increase, be prepared to make quick decisions when you find a suitable property.
- Negotiate smartly: Use market data, a sharp realtor, and the potential for increased inventory to your advantage in negotiations. By staying informed about these market dynamics and being strategic in your approach, you can position yourself to make the most of your relocation in 2025.
Stay informed about economic indicators and Fed announcements if you are planning a relocation. Working with a lender who specializes in airline-pilot pay, conventional, investment and VA loans is crucial to ensuring you get the best deal for you and your family.
Trident Home Loans (Equal Housing Lender, NMLS 65716) is an airline industry leader for securing the right mortgage for you. Contact Spencer Wartman (NMLS 2109932) at [email protected] or spencerattrident.com and let him help you secure your future home!
Also, feel free to reach out to Spencer directly if there’s a topic you’d like for him to touch on.
Trident Home Loans, NMLS ID 65716, Corporate Office located at 6723 Plantation Rd, Pensacola, FL 32504.Any offers or advertisements for mortgage products on our website or other platforms are subject to conditional approval. The actual terms and conditions of a mortgage loan, including interest rates, loan amounts, and eligibility, are dependent upon several factors, including the borrower's creditworthiness. Trident Home Loans reserves the right to modify or revoke any offer, and final approval is contingent upon the completion of a full application, verification of information provided, and meeting all underwriting requirements. For information regarding our licensing, you can visit our website at www.Tridenthomeloans.com.Trident Home Loans is an Equal Housing Lender. Please note that this disclaimer is provided for informational purposes and may be subject to updates or changes in accordance with regulatory requirements. Borrowers are encouraged to contact Trident Home Loans directly for the most up-to-date and accurate information regarding mortgage products and offerings. This advertisement is not an offer to lend, and all applications are subject to credit approval. Terms and conditions may apply.
