“Economists predicted that the United States would break free of its long-running housing slump in 2025. But the opposite happened.” (New York Times)
Due to a combination of President Trump’s trade war and higher interest rates, home sales just aren’t happening like economists predicted they would.
Thirty-year fixed mortgage rates hit 6.89% last week. There really isn’t any urgency to buy, and it feels risky to some because some of the tariffs will result in job losses.
Will there be a recession? It is hard to say.
The small business owners I have talked to are very concerned about how tariffs will impact their businesses and whether they can stay in business.
No, the housing market isn’t going to recover in 2025. To me, 2029 looks promising as a new president takes office and signs executive orders that undo the executive orders from the Trump regime.
Tomorrow I’ll have some numbers for home sales in St. Paul for May 2025.
