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On The Market

New Tariffs Mean Much More for Mortgage Rates Than You Think

Feb 6, 2025
33:39

Tariffs and trade wars could affect mortgage rates much more than most Americans think. You’ve heard on the news that tariffs on Canada mean higher gas prices, tariffs on Mexico mean a bigger grocery bill, and tariffs on China lead to electronics and appliances becoming even more expensive. However, as a real estate investor or homeowner waiting to refinance, the key number to watch for the impact of tariffs is interest rates.

Today, we’re breaking down how the tariffs will affect you, which prices will rise, which real estate investments will become even more costly, and how interest rates have been held hostage by tariff threats. If tariffs are contributing to the current high mortgage rates, could tariff concessions lead to lower rates? If President Trump can work out deals with trade partners, would this mean a cheaper mortgage payment?

We’re breaking down tariffs, trade wars, rising prices, and how they’ll affect your real estate investments.


In This Episode We Cover

New tariff update: which countries have reached a deal and which are currently tariffed

Why mortgage rates are surprisingly affected by tariffs and trade wars

Who pays the tariffs once they’re in place (most Americans have this WRONG)

A post-tariff inflation prediction and whether we’ll bump back to pandemic inflation levels

Trump’s two primary goals for imposing tariffs on Canada, Mexico, and China

And So Much More!


Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

Dave's BiggerPockets Profile

On The Market 290 - Redfin: Tariff Fears Drive Up Mortgage Rates, Throwing 2025 Off-Track

Know the Numbers BEFORE You Invest with “Real Estate by the Numbers”



Jump to topic:

(00:00) Intro

(03:21) Tariffs Imposed, Now Paused

(05:26) Trump’s Tariff Goal

(07:48) Who Pays the Tariff?

(12:17) Inflation Prediction

(13:19) Which Prices Will Rise?

(16:49) Cars Could Cost Much More

(19:04) China's 10% Tariff Starts Now

(20:24) Big Mortgage Rate Effects


Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-293 

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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