U.S. economy slows under policy uncertainty as bond markets signal recession worries
Posted on May 2, 2025 |
Bond investors have regained confidence after initial tariff concerns, driving the 10-year Treasury yield down to 4.3%.
Mortgage rates averaged 6.8% last week but are expected to decline in the coming days.
Increased bond purchases suggest that some economists and investors fear a possible U.S. recession.
The Port of Los Angeles is projected to see a 33% drop in traffic next week due to the effects of China tariffs.
Homebuilder sentiment remains low, with the NAHB Housing Market Index at 40 in April, despite a slight rise.
Tariff-related material costs have pushed average homebuilding expenses up by $10,900; 61% of builders are using incentives to drive sales.
March saw a 7.4% rise in new single-family home sales, but existing home sales dropped 5.9%, with prices surpassing $400,000.
Housing affordability continues to fall, with Q1 2025 homeownership at 65.1% — the lowest since 2020 — especially affecting buyers under 35.
