This is a YouTube video titled "Tariffs and mortgage rates—what’s the connection? 🤔" containing a discussion about the impact of US tariffs on mortgage rates, focusing on inflation and insights from Fed chairman Chris Waller. The content explains how tariffs might cause a short-term inflation spike but are unlikely to affect long-term mortgage rates significantly. The video was created in February 2025.
What impact will tariffs have on mortgage rates? So we've probably heard more about the tariffs the US Is planning to impose on other countries. And there's been some questions I've gotten on. What does that mean for mortgage rates? The question really revolves around inflation. So really it's what do tariffs have to do with inflation? And the Fed chairman, Chris Waller just spoke yesterday on the topic and he felt that worst case, it might be a one time jolt in inflation and then everything will figure itself out, the market goes back to normal, it won't be an ongoing inflation issue. And that's what the Fed cares about. That's what the markets care about. They've shown in the past that whenever there were tariffs, you know, imposed, it might have been like a blip on the radar with inflation and then it goes back to normal. The Fed looks at long term data like 12 month rolling average data. It's almost stubbornly long term. So a blip on the radar shouldn't be a big impact to mortgage rates. The mortgage rates are looking at big picture long term inflation. If inflation goes down, mortgage rates will follow.
