BMO Family Office
Home prices are high. Affordability is falling. Housing starts and sales are slowing.
Mortgage delinquencies continue trending downward, and are at the lowest level in a decade.
Current 30-year fixed mortgage rates are in the 4.5% range – up about 1% since 2016, but below the 20-year average of about 5.4%.
We believe that the economy can digest wage growth of about 3.5% without meaningfully cutting into corporate profit margins
To the extent all of these tariffs actually go into place, we would expect the real economic effects to increase somewhat gradually but eventually become meaningful – dampen capital expenditure, dampen consumer sentiment, and raise prices.
Download and read the October Outlook for Financial Markets to learn more.
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