On The Market Mortgage Rates Fall EVEN Further as “Tariff Tuesday” Triggers Stock Sell-Off
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Mar 6, 2025 The latest economic shifts are causing quite a stir. 'Tariff Tuesday' triggered a stock market sell-off, raising concerns about a looming recession. Meanwhile, mortgage rates are surprisingly dropping despite inflation fears. What does this mean for real estate investors? Rising costs of materials and retaliatory tariffs could complicate the housing landscape. As uncertainties rise, strategies for navigating investments in real estate and stocks are more crucial than ever. Will rates continue to fall, or have we hit rock bottom?
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Tariffs and Inflation
- Tariffs are a tax paid by importers, increasing costs for American companies receiving foreign goods.
- This can lead to inflation as companies pass these increased costs onto consumers.
Impact on Construction Costs
- New tariffs will likely increase construction costs because many building materials are imported.
- Rising lumber prices, even before the tariffs, illustrate this inflationary pressure.
Impact on Consumers
- Tariffs affect all Americans through increased grocery and car prices.
- This could reduce consumer spending and impact tenants' ability to pay rent.