Mortgage Rates Drop as Tariffs Trigger Market Shift

1 Credits

Mortgage Rates Drop, But Housing Costs Soar: Affordability Challenges Persist

Mortgage rates took a sharp dip this week, offering some relief for homebuyers, but the high cost of housing continues to pose challenges. The average rate on a 30-year fixed mortgage dropped 12 basis points to 6.63% on Thursday, the lowest since October. This comes after a major sell-off in the stock market, which caused investors to flock to the bond market, pushing bond yields—and mortgage rates—down.

However, despite the drop in rates, housing affordability remains near a record low. For the four weeks ending March 30, the typical U.S. homebuyer’s monthly payment hit a new record high of $2,802, continuing a trend of rising costs. Sale prices have risen 3.4% year-over-year, and with the average mortgage rate still hovering above 6%, many buyers are finding it tough to enter the market.

In fact, about 70% of U.S. households, or roughly 94 million people, cannot afford a $400,000 home. Meanwhile, the median price of a new home in 2025 is expected to reach $460,000.

Despite a 10% increase in new listings in March, many homes are priced higher than what buyers can afford, and homes are sitting on the market longer. With growing economic concerns, experts say the housing market may remain sluggish through the spring, although the improved mortgage rates could help buyers later this season if economic conditions stabilize.

Source: Link

Mortgage CEO Arrested After Cruise Ship Altercation

The CEO of a Southern California-based mortgage company was arrested Tuesday following a confrontation where he allegedly threatened the life of a fellow passenger on a cruise ship. Kenneth DeGiorgio, 53, CEO of First American Financial Corporation, faces federal assault charges after an incident on a Virgin Voyages cruise.

According to a federal complaint, the altercation began when DeGiorgio’s wife asked a man dancing barefoot at the “On The Rocks” bar to put on shoes. The man allegedly responded with an insult, and surveillance footage shows the man making an obscene gesture. Moments later, DeGiorgio is seen approaching the passenger and engaging in a physical altercation.

The victim told FBI agents he felt threatened during the incident. DeGiorgio declined to comment without legal representation, but his legal team stated that DeGiorgio was defending his wife from harassment.

DeGiorgio has been charged with assault within U.S. maritime jurisdiction and looks forward to resolving the matter.

Source: Link

Maui Short-Term Rental Phase-Out: Economic Impacts and Housing Relief

A new report from the University of Hawai‘i Economic Research Organization (UHERO) has provided insight into the potential impacts of Maui County’s proposal to phase out nearly half of the island’s transient vacation rentals (TVRs). The goal of the proposal is to address Maui’s housing crisis by converting these short-term rentals into long-term housing.

The affected properties, known as the “Minatoya List,” are located in apartment-zoned districts. According to UHERO, this shift could add around 6,000 units to the long-term housing market, equating to about a 13% increase in Maui’s housing stock. This would significantly alleviate the ongoing housing shortage, helping meet the needs of families who have struggled with skyrocketing rental prices.

However, the economic impact could be substantial. The report warns that the phase-out could lead to a reduction in visitor spending by nearly $900 million annually, as well as a loss of around 1,900 jobs. Since leisure and hospitality sectors employ about one in four workers in Maui County, this would lead to a contraction in the island’s economy by approximately 4%.

In addition, the proposal could drive down condo prices by about 25%. Currently, out-of-state investors own roughly 85% of Maui’s transient vacation rentals, and this price drop would impact both investor-owned and owner-occupied properties.

Maui Mayor Richard Bissen responded to the UHERO study, calling it a valuable first step, but he emphasized that economic models alone can’t fully capture the lived experiences of local residents. In his statement, he pointed out that the proposal does not account for the pressures on families living in overcrowded conditions or the cultural loss of residents being forced to leave the island due to affordability challenges.

Ultimately, while the phase-out of short-term rentals could provide significant relief to the housing crisis, it may come with tough economic trade-offs.

Source: Link

3 Things You Need to Know delivers concise, no-nonsense real estate news, ensuring that agents stay informed and ahead of the curve.

Stripping away editorial commentary, the show focuses on the key developments shaping the real estate industry and the broader U.S. economy.

Whether it’s market trends, legislative changes, or economic shifts, each episode distills the most important information into easily digestible segments.

Designed specifically for real estate agents, “3 Things You Need to Know” equips you with the insights they need to make informed decisions and thrive in a competitive market

Stay connected to the pulse of the industry with timely updates that matter each weekday, Monday through Friday.
Report your news by emailing info@ontrackagent.com.

 

3 Things You Need to Know – Copyright 2025 – OnTrack Agent

Buy Now

---