Will #tariffs cause the Fed to raise or reduce the Funds rate? #realestate

Tariffs are essentially taxes placed on imported goods. They raise revenue for the government, but they also increase costs for both the foreign producers and the domestic consumers. That's us. This means higher prices for building materials, resulting in higher construction costs, which could slow down new home development and tighten inventory, which could drive up home prices because of increasing demand. Tariffs disrupt global efficiency by raising prices and reducing trade flows. Other countries might retaliate with tariffs of their own, or it might just open up negotiations for better rates. Either way, buyers are starting to get used to mortgage interest rates, and we saw this by the huge increase in activity when rates dropped to the low 6% range a few weeks ago. There is a lot of pent-up demand in the market right now, and the timing is perfect for the most active time of the year in real estate, which is the spring and summer.