Trump tariffs could have major impact on housing market

FRESNO, Calif. (KFSN) -- After mortgage rate increases and soaring home prices, many are now wondering how Trump's tariffs will affect interest rates and housing costs.

"In the last year, the rates are a little higher, in the last four years, they were even higher so with that being said, we are seeing the rates are coming down and they're steadily coming down, but slowly. Are we at pre-pandemic levels yet? No, not yet. We'll probably never be that low," says Paul Salazar, Mortgage Loan Originator, Sierra Pacific Mortgage.

Paul Salazar, Branch Manager of Sierra Pacific Mortgage, gave Action News an example of a change in rate in just the last month.

"A month ago, you could only get 6.750, but today you can get 6.6250," says Salazar.

Most lumber used in the U.S. is from Canada, and that lumber is now facing a 14.5% tariff. The National Association of Home Builders estimates this could increase the average cost of a home by about $9,200.

Valley realtors like Don Scordino are keeping a close eye on consumer confidence and supply.

"There is more supply than I would say this time last year than the year before. Most of it seems to be from people aging and moving into retirement homes," says Don Scordino, Realty Concepts.

Last month, home prices in California were up 6% compared to last year, with the median sale price over $830,000. Here in Fresno, it's nearly half that at $414,000.

Scordino says uncertainty in the market could create opportunity.

"I think what you're going to see is interest rates will drop a little bit, and prices will go up a little bit. It'll probably balance out," says Scordino.

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