This episode explores the impact of various economic factors on the U.S. housing market. Against the backdrop of decreasing then retracing mortgage rates and rising tariffs increasing building material costs by an estimated 8%, the hosts analyze the current state of the market. More significantly, the discussion delves into the implications of a 15% stock market downturn, considering its effect on homebuyer affordability and sentiment. For instance, historical data reveals that while home prices often rise during equity market corrections, sales volumes invariably decline; the magnitude of this decline is amplified when coupled with significant mortgage rate increases. The hosts also highlight the significant differences in mortgage payment-to-income ratios based on the year the home was purchased, with newer mortgages showing considerably higher ratios. Ultimately, despite the current economic headwinds, the analysts predict continued support for home prices, albeit with a potential slowdown in sales volume growth.
