Talk of the trade dispute and what it could mean for homebuying – and the wider mortgage market – is spilling into broker-client conversations
‘Tariff’ has been the word of the year for the US economy so far in 2025, barely a day passing without some new mention of measures by the Trump administration targeting imports from other countries.
A wave of charges on automaker imports appears to be the latest shot fired in that escalating trade war, which is also set to see a flurry of so-called “retaliatory” tariffs come into play on Wednesday next week (April 2).
In Detroit, unease about those tariffs – many of which heavily target neighboring Canada – has seeped into conversations about homebuying and mortgage prospects in recent weeks.
That’s because concern about their impact, and whether they could imperil the economy or drive up the cost of purchasing a home, is increasingly on the minds of borrowers and would-be buyers in the area.
Tariff talk “definitely has had an uptick,” Samantha Shelton (pictured top), founder at Detroit-based Align Lending, told Mortgage Professional America. “I would say most of the clients I work with are really focused on things like interest rates, monthly payments, downpayment options, and whether it really is a good time to buy based on their personal goals.
“Tariffs weren’t something that we typically ever would bring up but with them being as close to Canada and working here, it is a topic of conversation – especially here in Metro Detroit. For people who work in industries like automotive, that is definitely something that they take into consideration.”
Tariff talk a constant theme throughout 2025 so far
Tariffs, particularly against auto imports, have been a longstanding pillar of Trump’s bid to bring jobs back to the United States and punish companies that rely on foreign production.
But many experts have questioned that approach, arguing that they drive prices upwards – either through companies passing higher costs down to the consumer or by impelling the purchase of costlier materials domestically – and can potentially spur inflationary pressure.
Fannie Mae West of Optist Inc. shares insights on the US housing market, urging first-time buyers to understand the financial implications of their decisions.https://t.co/JxNbJ3xYAW
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That means the mortgage community in Detroit and elsewhere is keeping a close eye on the tariff outlook as they advise customers on the best path forward in the current market.
“I keep an eye on broader economic trends like tariffs because while they might not seem like they impact housing directly, they absolutely influence things behind the scenes,” Shelton said. “They can lead to increased costs of goods and materials, which eventually push inflation higher.
“Inflation plays a big role in what happens with interest rates. So whether it directly impacts my clients or not, I have to remain that this is a hot topic in conversation and watch it closely in the background.”
Tariffs, particularly against Canada and Mexico, have been a constant theme of Trump’s two-month-long presidency. In early February, his administration looked set to go ahead with sweeping 25% charges on most Canadian and Mexican imports, ultimately delaying those after last-gasp talks with Mexican president Claudia Sheinbaum and Canada’s then-prime minister Justin Trudeau.
At the beginning of March, Trump pushed ahead with those measures before once again stripping them back, exempting most trade covered under the US-Mexico-Canada agreement until the start of April.
Borrowers staying upbeat despite tariff uncertainty
But despite uncertainty around what’s coming next on tariffs, and the fact that mortgage rates are still high compared to the levels seen during the COVID-19 pandemic, Shelton said she had seen a “slow but steady” shift in consumer behavior, with hopeful homebuyers no longer shellshocked by that climb in rates.
“Rates are staying higher than what people grew accustomed to in recent years,” she said. “Buyers are starting to adapt and adjust their expectations to where we’re at, and we’re seeing more people focus on their affordability strategies. Before, it was: ‘Should I wait to buy?’ or ‘I’m just going to sit on the sidelines and wait for my time.’
“They’re really starting to get back in the market, whether that means they’re considering rate buydowns or getting creative with loan products – we’re even having people look at multigenerational housing to share expenses, making it more affordable. Buyers are becoming more intentional. And that’s a positive shift.”
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