I’m sure you’re all too familiar with to spring weather in Utah. The possibility is there to experience all four seasons in one day. One hour it’s 75 degrees and then next hour its snowing!
Mother nature and financial markets have something in common – things can change rapidly and without notice.
Earlier in April, President Trump revealed his new tariff policy, unleashing global and financial chaos. Stock markets went plummeting and businesses struggled to plan for the new policy changes.
The uncertainty has created a core problem. That is, we just don’t know what the underlining affects of tariffs will be in the short, mid and long term.
Along with a “tariff on, tariff off” approach to things, the Trump administration seems to be challenging the status quo with the hope that the best results will make themselves known.
A brilliant person once said, “hope is not a business strategy”.
As I said back at the end of 2024, mortgage interest rates are on the same path and channel until our economy weakens further.
From my last newsletter:
“Two major things need to happen in 2025 for rates to move meaningfully lower. Lower inflation and higher unemployment. The Fed won’t detract from their current rate path until both occur. And until those things happen, plan on rates staying in a channel between 6-7%”.
If you or someone you know needs help purchasing a home or refinancing their mortgage this spring season, please give me a call. I’d be happy to help.
Until then, make sure you have your shorts and winter coats ready!