By Phil Crone
Executive Officer
Dallas Builders Association

In the midst of a nationwide, 10-year low in affordability, the housing industry is bracing for additional tariffs. From tile to countertops, laminates, lighting, and furnishing, about 450 products commonly found in new homes and remodeling projects are seeing tariffs rise from 10 percent to 25 percent due to the escalating trade war between the United States and China.

According to the National Association of Home Builders (NAHB), homeowners and homebuilders nationwide will be paying an additional $2.5 billion. Existing tariffs on Chinese imports and Chinese retaliatory tariffs already reduce U.S. Gross Domestic Product by 0.15 of a point. These additional tariffs will lower GDP by another half a point. While painful, they should not, in and of themselves, induce a recession.

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From Staff Reports

With lumber tariffs already adding more than $6,000 to the price of every new home in Dallas, President Trump’s decision this month to escalate the trade conflict with China has builders bracing for more challenges to housing affordability. This decision could wind up imposing a $2.5 billion tax increase on residential construction, according to the National Association of Home Builders.

Trump announced he is moving immediately to impose 10 percent tariffs on an additional $200 billion worth of Chinese imports, including $10 billion of goods used by the home building industry. This 10 percent levy represents a $1 billion tax increase on residential construction. Making matters even worse, the tax hike will rise to $2.5 billion on Jan. 1 when the president said the tariff rate will jump to 25 percent if the two nations have not resolved their differences by year end. If China retaliates, Trump has vowed to place tariffs on an additional $267 billion worth of imports. The NAHB has strongly opposed this move.

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When was the last time you actually learned about how to save money when buying a home on Instagram? If you’re following BobMortgage, then you’re getting up-to-the-latest information that can help you get the best interest rate possible on your home loan. As Bob Johnson (AKA BobMortgage) explains to CandysDirt.com readers in his latest Mortgage Report, the stock market rallied on news of trade talks between the United States and China, though the bond market is a different story.

We love that Bob takes the time to educate home buyers on how the market affects interest rates — something you’d expect from the senior mortgage adviser at the nation’s oldest private lender, Wallick & Volk. So, should you lock or float? Find out that and more in this week’s Mortgage Report:

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Bonds made positive moves last week on Friday, which is typically a positive indicator for mortgage rates. However, the Federal Reserve increased rates last week, too, though the comments were a mixed bag. All of this on top of what appears to be a budding trade war with China. 

Looking for clarity in a turbulent market? Look no further than this week’s Mortgage Report from the most-trusted expert in North Texas — Bob Johnson (AKA BobMortgage), senior mortgage adviser at the nation’s oldest private lender, Wallick & Volk

Should you lock or float? What’s Bob’s outlook on the economy? Find out after the jump!

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