Mortgage Rates Fall Fast as Tariffs Trigger Mass Stock Selloff, Economy at Risk

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 7 April 2025

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Last week’s tariff announcement from the Trump administration put the stock market in a freefall. Major indexes are now past correction territory and on their way to crash status. But one silver lining for real estate investors? Mortgage rates. Economic fear is pushing more investors to buy bonds, lowering yields and mortgage rates. How long will suppressed mortgage rates last, and could rates fall even more? The Trump administration’s latest round of tariffs may be the most significant change in economic policy in 50 years. This affects not just Americans but the entire world, as President Trump purposefully pursues a “deglobalization” strategy. This could force us to form new allies, break ties with old ones, and see a shift to much less reliance on foreign trade partners. What does that mean for real estate investors? Well, you could see certain costs go up—significantly. We’ll discuss exactly which costs will rise, and by how much, and what investors should do to protect themselves—not panic—in this highly volatile time. In This Episode We Cover Trump’s latest tariff announcement explained and the countries that will be hit hardest Why Canada and Mexico were excluded from the new round of tariffs How economic fear affects interest rates, and whether these low(er) rates will last One MASSIVE risk that could hurt all Americans if it comes to fruition What Dave is doing right now to protect (and grow) his portfolio during downturns And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find Investor-Friendly Lenders Dave's BiggerPockets Profile BiggerPockets Real Estate 1103 - April 2025 “Upside” Update: Making a BIG Change to My Portfolio (Cashing Out) Invest During Any Market Cycle with “Recession-Proof Real Estate Investing” Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-310 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Last week, President Trump announced what I think genuinely could be the most significant change
0:05.7	to U.S. economic policy in more than 50 years.
0:09.5	Today, we're going to dive into what happened, how the global economy is reacting, and what
0:14.0	happens from here.
0:19.9	Hey, everyone, it's Dave Meyer, head of real estate investing at Bigger Pockets.
0:23.7	And today we're going to unpack the enormous economic news from last week and talk about the repercussions, at least the ones that we know about, that are already rippling through the global economy.
0:35.2	And I know that we've covered tariffs a few times on recent episodes,
0:39.9	but what happened over the last few weeks feels different, at least to me. This feels like more
0:45.7	of a definitive, a more enduring change to U.S. economic and foreign policy than it had when
0:53.9	the Trump administration had made previous
0:56.4	announcements for individual countries or individual goods or products. And I know not everyone does
1:01.7	this, but I watched the entire announcement of President Trump unveiling these new tariffs and
1:06.2	these new policies. And the impression that I got was that these tariffs are here to stay for the foreseeable future.
1:14.5	And I know that we've seen tariffs on. We've seen tariffs off over recent months.
1:18.8	But this feels different because it's just this broad sweeping policy.
1:24.2	And it goes beyond what a lot of people have been saying that tariffs are just a
1:29.2	negotiating tactic. And that could still be true. I personally believe we're going to see some
1:33.6	changes to tariff policies. I don't think this is set in stone. I think individual countries,
1:38.5	tariff levels, different tariffs on individual goods are going to change. But I think that
1:43.7	the Trump administration is showing that they really believe in tariffs. And goods are going to change. But I think that the Trump administration is showing that they really believe in tariffs.
1:47.8	And they are going to make tariffs and de-globalization cornerstones of their administration.
1:53.4	And this is going to impact everyone.
	...

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