On The Market Mortgage Rates Fall Fast as Tariffs Trigger Mass Stock Selloff, Economy at Risk
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Apr 7, 2025 Recent tariff announcements have sparked fears of a stock market crash, yet a silver lining for real estate investors is the fall in mortgage rates. As economic uncertainty drives bond buying, rates may see further declines. The discussion highlights the profound impact of tariffs on global trade, particularly on reconstruction costs. Insights into investment strategies during market volatility are provided, encouraging calm decision-making amidst potential stagflation risks. The speakers detail the importance of adapting to shifting economic landscapes and protecting one's portfolio.
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New Tariff Policies
- President Trump announced a 10% baseline tariff for all countries, a 25% tariff on automobiles, and reciprocal tariffs on certain other countries.
- Canada and Mexico were excluded from the reciprocal tariffs, likely subject only to the 10% baseline.
Stock Market Reaction
- The stock market reacted negatively to the tariff announcement, with major indexes experiencing significant declines.
- This drop, despite positive job growth data, signals investor concern.
Bond Yield and Mortgage Rates
- Bond yields fell to their lowest point since summer 2024, potentially lowering mortgage rates.
- This drop is attributed to investors seeking safer assets amid economic uncertainty.