Trade tensions and mortgage market impact
The renewed US-China trade dispute, including threats of 100% tariffs on Chinese imports, has injected volatility into financial markets and raised concerns among mortgage professionals about future borrowing costs.
“I had been operating under the assumption that the uncertainty had dissipated, and therefore I felt more sanguine about some aspects of the growth outlook. Now, potentially, this is back because the Chinese are reneging on deals that were already made,” Miran said.
Mortgage lenders and brokers have paid close attention to the Fed’s moves, since lower rates often mean cheaper mortgages and more refinancing. Still, if economic uncertainty grows and people lose confidence, demand for homes could drop.
Miran’s call for quicker rate cuts has fueled debate inside the Fed. While Chair Jerome Powell backed another small cut, Miran has pushed for bigger, faster action to address risks from trade disputes and a slowing global economy.
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