Politico
Americans are increasingly worried that President Donald Trump’s policies will force the economy into a stall. For homebuyers, that prospect is actually bringing some good news.
Rates on 30-year fixed-rate mortgages have been sliding steadily below 7 percent over the last several weeks, a reflection of a plunge in economic sentiment that’s roiled Wall Street and scrambled investment plans. Applications for new mortgages shot up by more than 11 percent during the first week of March — a 31 percent improvement over the same period last year and just in time for the housing market’s busy spring buying season. Refinancings have surged from historic lows as more homeowners capitalize on lower borrowing costs.
The sore spots for the economy — tariff wars, an uncertain regulatory landscape and mixed data on inflation — are benefiting the housing market by driving down interest rates, according to Lawrence Yun, chief economist at the National Association of REALTORS®.
“Even in an economic recession, generally home sales can rise if the mortgage rate declines,” he said. And with the Federal Reserve expected to lower borrowing costs again later this year, mortgage rates are projected to continue to trend downward.
“I think this is a year where we will begin to see a meaningful growth in home sales,” Yun said, thanks to both lower mortgage rates and inventory “beginning to show meaningful increases.”