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The US faces a heightened risk of recession due to new reciprocal tariffs announced by the administration. Oxford Economics downgraded its 2025 GDP growth forecast to 1.4%, down from 2% previously.

Are we in a recession? Not technically, but many feel it due to rising costs and reduced economic confidence Are rate cuts coming? Likely this summer, but the Fed is cautious as inflation cools slowly.

Federal Reserve officials express growing concerns that new tariffs may elevate inflation risks.​ The unpredictable implementation of tariffs could disrupt supply chains and raise consumer prices.

Washington is the eighth-most expensive US state, with a cost of living index of 115.10. The avg annual expenditure is ~$42K, significantly above the national avg.

Tariff announcements triggered bond sell-offs, pushing yields higher and raising 30-year fixed mortgage rates above 7%. Despite some Fed rate cuts, experts expect mortgage rates to hover around 6.5% through 2025.

Mortgage rates may remain high, limiting home affordability through 2025. Buyer confidence could decline, potentially reducing housing demand.