Watch the original video: 2025 Market Predictions: Trump’s Impact on Rates & Inflation
This Month’s Topics:
☑️ Trump’s Plan to Lower Inflation
☑️ Interest Rates in Q1
☑️ Trends in the Housing Market This Spring
Watch the Video Above for More Details ☝
Trump’s Plan to Lower Inflation
President Trump has made it clear that he wants lower interest rates and reduced inflation to stimulate economic growth. While he doesn’t have direct control over rates, he is pressuring Federal Reserve Chair Jerome Powell to lower them. However, Powell has stated he will act in the best interest of the economy, not necessarily aligning with Trump’s wishes. Trump’s strategy to combat inflation includes deregulation, tax cuts, and incentives for builders to create more housing supply. If successful, these measures could reduce overall costs, lower inflation, and eventually bring mortgage rates down, but how long this will take remains uncertain.
Predictions for Mortgage Rates in Q1
Mortgage rates are currently tied closely to inflation and the 10-year Treasury yield. Despite earlier Fed rate cuts in 2024, mortgage rates remained high. The Fed’s recent decision to hold rates steady suggests we may not see further rate reductions until late 2025. The key to lowering mortgage rates is bringing inflation down. While Trump’s policies may support that goal, the timeline remains unclear. In the meantime, homebuyers should watch for rate fluctuations, and keep working with a lender to make sure you’re making the best homebuying decision possible.
Trends in the Housing Market This Spring
The housing market is shifting into what many analysts call a neutral market, meaning it’s no longer a strong seller’s market but not quite a buyer’s market either. Days on market are increasing, with some homes sitting for 100+ days before selling. Housing inventory is rising, with some areas seeing a 15-50% increase in listings compared to last year. This presents a unique opportunity for buyers, especially those willing to negotiate on price and seller concessions. Programs like “Buy Before You Sell” are helping homeowners move without contingent offers, making transactions smoother in a changing market.
Whether you’re buying, selling, investing, or relocating, I’m here to help you create a plan tailored to your goals. Feel free to reach out by call, text, or replying to this email, I’d love to hear from you and guide you through the opportunities this year brings.