Financial markets remained steady despite reports of impending tariffs on China, Canada, and Mexico, leaving bond market investors relatively unruffled on Friday. However, uncertainty still looms over the specifics of these tariffs that are set to be imposed.
- President Trump’s planned 25 percent tariffs on imports from Canada and Mexico, along with 10 percent tariffs on Chinese goods, are expected to come into effect on February 1, according to White House press secretary Karoline Leavitt.
- The National Association of Home Builders (NAHB) voiced apprehensions about the potential repercussions on the housing market due to these tariffs. NAHB Chair Carl Harris highlighted the concerns around increased material costs, which could lead to rising housing prices, making affordability a significant issue.
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Despite the Federal Reserve’s series of short-term interest rate cuts last year, mortgage rates have been on an upward trajectory. Worries stemming from Trump’s policies have contributed to investors fearing inflation, despite yields on 10-year Treasury notes rising only slightly on Friday.
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Trump’s nominee for Secretary of Commerce, Howard Lutnick, downplayed concerns over tariff-induced inflation, proposing that exemptions could be granted to Mexico and Canada for certain goods if they tighten border security measures to curb drug trafficking.
In light of this uncertain economic landscape, it is crucial for industry players to remain vigilant and adaptable to navigate through potential challenges ahead. Stay informed, stay prepared, and ensure that your real estate endeavors are fortified against any potential disruptions in the market.
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