Housing Market Faces Struggles Amid High Rates and Tariff Uncertainty

Builders and buyers brace for challenges as interest rates remain elevated and new trade policies threaten to increase construction costs.

The National Association of Home Builders' confidence index dropped to its lowest level in five months, reflecting pessimism over market conditions.
Trump administration tariffs on Canadian and Mexican goods, delayed but likely to take effect, could significantly raise construction material costs.
Housing starts fell 9.8% in January, with single-family home construction declining 8.4%, exacerbating the ongoing housing supply crisis.
Persistently high mortgage rates, currently around 7%, continue to strain affordability for buyers and slow home sales nationwide.
Experts warn that rising material costs and labor shortages could further hinder new home construction and worsen the affordability crunch.