With tariffs and trade disputes making headlines, many are wondering how this could impact mortgages, home prices, and affordability. Here’s what’s happening and what it means for you.
The Impact of Tariffs on Housing
Recent U.S. tariffs on Canadian steel and aluminum could drive up construction costs, leading to:
- Higher home prices due to rising material costs.
- More expensive renovations for homeowners.
- Fewer new homes, tightening supply.
Mortgage Rates & Market Volatility
The Bank of Canada has made multiple rate cuts, but uncertainty remains. Trade disruptions could:
- Increase inflation, potentially leading to higher interest rates.
- Slow economic growth, which may prompt further rate cuts.
- Affect buyer confidence, with some rushing to lock in low rates while others wait for stability.
What This Means for You
- Variable-rate mortgage? Payments are lower for now, but future rates are uncertain.
- Fixed-rate mortgage? Refinancing could still be a smart move while bond yields remain low.
- Looking to buy? Rising costs may push prices higher—acting sooner could be beneficial.
Stay Ahead of Market Shifts
The housing market is changing fast. Whether you’re buying, refinancing, or weighing your options, I can help you navigate these changes.
Ready to get started? Contact us today for a free consultation.
