Two major factors influencing current mortgage rates over 6.5% are President Trumpâs 90-day tariff deal with China and recent inflation data. While tariffs on construction materials have raised homebuilding costs, a rollback could provide brief relief to builders. However, inflation data remains a concern despite a slight annual decrease. Market sentiment shows a dramatic shift away from anticipated Fed rate cuts, as only 8% of traders forecast a decrease in June. Uncertainties in employment and inflation make future cuts uncertain as traders predict potential decreases in July and September.
In light of President Trumpâs tariff deal with China, the real estate market may see some temporary relief as construction material costs could drop, benefitting homebuilders.
Despite lower inflation data suggesting a possibility for interest rate cuts, market participants remain skeptical as inflationary pressures could resurge due to tariff implications.
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