Buyers jumped at lower mortgage rates earlier this year, but experts say economic uncertainty amid Trump’s trade war could stall the housing market.
CHARLOTTE, N.C. — Home sales may be up, but behind the scenes, builders are hitting pause. Rising costs, shaky confidence and global trade tensions are creating new roadblocks for America’s housing market.
New home sales are climbing, but builders are slowing down production. Sales rose more than 7% last month as buyers jumped at lower mortgage rates and better supply. But that window may be closing quickly.
Rates are rising again and builder confidence is slipping. New construction dropped 11% and developers are worried about what’s coming next.
One big issue? President Donald Trump’s trade war. Only a small share of building materials are imported, but costs are still rising, and those price hikes are making it harder to move projects forward.
Some builders are delaying construction or stockpiling supplies before tariffs make things too expensive. Others are seeing buyers back away over sticker shock and uncertainty about the economy.
Experts warn we could see an even bigger slowdown by the summer. And with mortgage rates near 7% again, it’s getting tougher for families to buy their dream home.
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