Bloomberg Daybreak: Asia Edition Daybreak Weekend: Tesla Results, Europe Earnings, China Tariff Reaction
10 snips
Apr 18, 2025 AI Snips
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Transcript
Episode notes
Mortgage Rates Drive Home Buying
- Mortgage rates are the biggest factor in homebuying decisions, more than home prices due to their leverage on monthly payments.
- Even a small increase in mortgage rates can significantly raise monthly payments, impacting affordability.
Tariffs Keep Mortgage Rates Elevated
- Tariff-driven inflation could keep long-term mortgage rates high despite Federal Reserve actions.
- The Fed may be unable or unwilling to lower mortgage rates by buying mortgage-backed securities again.
Mortgage Rates Impact Home Sales
- Existing home sales and pending sales could decline due to rising mortgage rates making selling less attractive.
- Inventory availability and low-coupon mortgages have limited home sales despite some purchase demand increase.