On The Market

Mortgage Rates Fall EVEN Further as “Tariff Tuesday” Triggers Stock Sell-Off

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?

26:50

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Quick takeaways

The imposition of tariffs on imports is raising construction costs significantly, which could deter new home building and affect housing supply.

Despite rising inflation concerns from tariffs, falling mortgage rates provide a potential advantage for real estate investors amid economic uncertainty.

Deep dives

Impact of Tariffs on Construction Costs

Tariffs imposed on goods from Mexico, Canada, and China are significantly affecting construction costs in the United States, particularly for real estate investors. For instance, the cost of imported lumber from Canada has risen by 25%, making it more expensive for builders to source materials necessary for new homes. This situation could deter construction activity as builders face higher expenses and lower profit margins, potentially leading to a decrease in the housing supply over time. Consequently, this may have longer-term implications for home prices and the overall real estate market's growth.

Intro

4min

Complexities and Impacts of Recent Tariff Changes

4min

Tariffs and Their Ripple Effect

12min

Navigating Mortgage Rates and Home Equity for Smart Investments

2min

Navigating Uncertainty: Investment Strategies in a Shifting Market

4min

“Tariff Tuesday” just hit, and the economic ripple effects are already in motion. The stock market saw a significant sell-off, key recession indicators are flashing, and mortgage rates dropped yet again. These shifts could have a major impact on the economy, but will they spill over into real estate? And as an investor, could your costs rise even more?

In this episode, Dave breaks down what actually happened on “Tariff Tuesday,” which tariffs were imposed, and how they could shape the months ahead. We’ll cover how different countries are responding and what this could mean for inflation, the stock market, and what you really want to hear about—mortgage rates. Could rates continue their months-long decline, or are we bottoming out for 2025?

These new tariffs directly affect real estate investors and anyone within the industry, but is Dave changing his investing strategy for 2025? Should you second-guess your stock portfolio and search for more stable assets as the market rollercoaster continues? We’re getting into it in this episode!

In This Episode We Cover

The “recession indicators” going off that have economists and everyday Americans worried

Why mortgage rates are FALLING even though inflation concerns are rising

Whether tariffs will make real estate investing even more expensive (and which homes will be hit the hardest)

The stock market’s “Tariff Tuesday” reaction and what it signals about the economy

Retaliatory tariffs and which countries are firing back at the Trump administration

And So Much More!

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