What was expected to be the strongest spring homebuying season in years has turned uncertain, as a new round of tariffs introduced by the Trump administration in March ripples through the U.S. housing market.
The tariffs, targeting construction materials like lumber, steel, and aluminum, have pushed up costs and sparked caution among both buyers and sellers.
Across the country, the impacts are being felt—from rising mortgage rates and inflationary pressure to a sudden spike in housing inventory and a decline in consumer confidence.
A Market in Transition – Mortgage Rate Volatility
After a steady climb through much of 2024, mortgage rates briefly dropped in early April 2025, with the average 30-year fixed rate falling to 6.55%, according to Freddie Mac.
Analysts attribute the dip to investor demand for safer assets amid trade uncertainty. But experts warn the reprieve may be short-lived. As tariffs drive up material costs, inflation could surge again—causing rates to rise once more.
Tariff-Driven Construction Costs
Tariffs have added approximately $9,200 to the cost of building a typical new single-family home, according to the National Association of Home Builders.
Builders are slowing projects, and fewer new homes are hitting the market—especially in high-growth regions like the Southwest and Southern California.
Inventory Up, Buyer Caution Grows
National housing inventory is up nearly 29% compared to last spring. While this gives buyers more choices, it also reflects a growing hesitation to commit to long-term purchases in a volatile economy.
Homes are lingering on the market longer, and price reductions are becoming more common in formerly competitive areas.
Filipino American Families Navigating the Shift
In major Filipino American hubs such as Carson, Daly City, Jersey City, and Las Vegas, the shifts in the market are especially pronounced.
These communities have long been home to multigenerational households and first-time buyers—groups particularly sensitive to rising costs and shifting lending conditions.
Recent research shows that multigenerational families had a 74.2% homeownership rate as of 2022, surpassing the national average.
Pooled resources and shared expenses allow these households to better absorb price shocks—providing some insulation against the current volatility (NAHB, 2024).
Still, challenges persist—especially for Filipino Americans entering the housing market for the first time.
FHA mortgage delinquencies have increased, a trend closely linked to inflation and higher debt burdens among first-time buyers. With fewer starter homes available and stricter lending conditions, many young families are pressing pause.
What Buyers Can Do
- Lock in Rates Early: Interest rates remain volatile. Buyers should seek pre-approval and secure financing as soon as possible.
- Leverage the Inventory Surge: With more homes on the market, buyers now have stronger negotiating power.
- Consider Multigenerational Solutions: Combining household incomes and resources can expand buying options and offer long-term financial resilience.
For Sellers: Realignment is Key
- Price Competitively: Homes priced to meet current market conditions are moving faster than those holding out for 2021 peak values.
- Invest in Presentation: Staging, repairs, and curb appeal improvements can make a major difference in a crowded market.
- Offer Incentives: Consider closing cost credits or rate buydown offers to attract budget-conscious buyers.
A Season of Caution and Strategy
The 2025 housing market is not collapsing—but it is recalibrating. Tariff-driven inflation, rate swings, and buyer hesitancy have altered the spring landscape.
For both Filipino American families and the broader market, success now hinges on adaptability, strategy, and timing.
In this evolving climate, careful planning and an informed approach remain the best tools—whether you’re looking to buy your first home, sell your current one, or support your family’s next chapter.
