Tariffs, High Interest Rates, Declining Stock Market—Oh My!
Let’s bring some clarity to the current state of real estate, the economy (as it relates to housing), and mortgage interest rates.
The good news? Historically, real estate has been a strong investment during times of uncertainty and recession.
With the ongoing tariffs—particularly with China—we’re likely heading toward a recession if these policies remain. But here’s the silver lining: home values have historically held strong (or even appreciated) during recessions. Even better? Interest rates often drop in those times, too.
It’s why I continue to stand by this: real estate is the best long-term investment you can make. It builds a foundation for long-term financial stability and success.
Thinking about buying? Here are three key reminders:
Now is a great time to buy. Why? Because sellers are motivated. This means price reductions and concessions are on the table. My favorite strategy? Negotiating seller concessions to reduce your closing costs or buy down your interest rate.
Don’t let the news guide your decisions. News outlets thrive on views—and nothing draws views like fear. The amount of misinformation around real estate and mortgages is at an all-time high. If you want real insight, talk to your Realtor and Loan Officer (hi!).
Focus on the purchase, not just the rate. I know this may sound strange coming from a Loan Officer, but hear me out. The true value of owning a home builds over time. If the monthly payment works for you, move forward—then refinance later if and when rates drop. Think of the folks who said, “I’ll wait until rates drop” back in 2022. Not only have rates stayed high, but home prices have jumped 15–20% since.
Final Thoughts
Whether it's you, a friend, or a family member—don’t fall into the “I’ll wait until…” trap. That strategy rarely works. One of my favorite quotes that applies to both the real estate and stock markets:
“It’s about time in the market, not timing the market.”
— Mark Fowler