Perfect Storm Brewing for Housing?

The latest Housingwire article highlights a concerning trend: tariffs are unleashing chaos in the housing market, leading to a significant spike in mortgage rates 📈 just as we're finally seeing some positive movement with more sellers entering the market 🏠 and a slight pickup in home sales!

For the first time in a while, weekly pending home sales were up year-over-year, offering a glimmer of hope. But this fragile momentum is now seriously threatened. The unpredictable nature of tariff policies is roiling the markets, making U.S. debt less attractive and driving up borrowing costs for everyday Americans looking to buy or refinance.

The big question is: can this recent market energy withstand this surge in mortgage rates, now back above 7%? Experts predict we might see a couple more weeks of rising sales before the impact truly hits. However, if these tariff-driven conditions persist, we're likely looking at a rapid deceleration in home sales 📉 and potentially a downturn in home prices 📉.

The timing of this couldn't be more critical, as we're entering the peak homebuying season. Unsold inventory has been climbing for years, reaching the highest level since 2019. Adding to this complexity, we're seeing a surge in new sellers – the highest in five years! This could indicate that some homeowners are acting on concerns about the economy, trying to secure their equity.

The confluence of rising mortgage rates due to tariffs, increased inventory, and a potential economic slowdown creates a truly precarious situation – a perfect storm for housing market turbulence. This isn't impacting t