A report from the Canadian Chamber of Commerce claimed that US tariffs on Canada, including duties on steel and aluminum, could cause homebuilding costs to increase by $14,000 per year by the end of 2027.
However, some domestic producers believe that they can make up for the loss of Canadian imports, which could keep any potential price spikes in check.
Hurting chances of September cut
The rising inflation numbers could damage the possibility of a September rate cut.
Melissa Cohn, regional vice president of William Raveis Mortgage, told Mortgage Professional America that the central bank had no choice but to hold rates.
“I think it was the only choice they had,” Cohn said. “Economic data has shown us that the economy is still moving along. The GDP number for the second quarter was much higher than expected. Employment numbers have been good, and inflation has been creeping higher. I mean, what else could the Fed do?”
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