Homebuilders' confidence has decreased, primarily due to rising interest rates and tariffs affecting profit margins. Lower mortgage rates could alleviate margin pressures, reflecting the current White House's economic policies. The current housing market displays characteristics of the 1980s downturn, where economic uncertainty initially led to reduced interest rates, subsequently increasing home sales. The recent Federal Reserve meeting emphasized concerns over tariffs and inflation, with increased uncertainty resulting in decreased bond yields and lower mortgage rates, which could promote housing market stability.
Any uncertainty in the economy and economic growth slowing down is actually beneficial for housing as the 10-year yield falls, says HousingWire's Logan Mohtashami.
Mortgage rates are trending lower, which reflect the policy priorities of the White House and the Trump economic team.
The ongoing economic uncertainty has led to a decline in the bond market and lower mortgage rates.
The current housing market shares similarities with the housing market in the 1980s, facing challenges regarding affordability and downturn in sales.
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