The exemptions for leading housing suppliers in Canada and Mexico are welcomed by industry experts from global tariffs.
Mortgage loan applications for new home purchases increased by 5.5% compared to a year ago, according to new data released by the Mortgage Bankers Association (MBA) on April 18th.
Data was collected as part of MBA’s March Builder application survey, showing applications increasing 14% each month, indicating renewed interest in the US housing market.
Meanwhile, the US Census Bureau said that privately owned homes began falling 11.4% per month in March.
A combination of adequate supply, affordable mortgage rates, and reasonable input costs like timber usually contributes to a healthy housing market.
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Mortgage fees supported by Freddie Macs have recently risen. The 30-year fixed-rate mortgage for the week ending April 17th is 6.83% after a three-week drop in the fall.
The economic uncertainty following President Donald Trump’s global tariffs has led to market fluctuations as investors adapted to the administration’s trade policy.
Trump has suspended most of the retaliatory tariffs, except for China’s tariffs.
Customs and housing supplies
In relation to the housing market, the administration is imposing a 25% tariff on all imports from Canada and Mexico, two major suppliers of raw materials used in construction and construction.
According to the National Association of Home Builders, when asked about how tariffs had an impact on businesses, 60% reported suppliers who have increased or announced prices of raw materials due to tariffs.
Canada and Mexico are exempt from the 10% global tariffs welcomed by housing groups.
Canada accounts for about 85% of all US softwood imports, accounting for almost a quarter of the available supply in the US. Mexico, meanwhile, is a supplier of concrete, plaster and almost coastal appliances.
“Some househunters are hanging on the sidelines as interest rates on the mortgage they want fall soon,” said Redfin’s agent Benews Martinez. “Buyers who are still active, those who usually need to move, prefer to ask for prices and hate paying, and those buyers have the right strategy.
Number contrasts show differences in the different US housing markets, durations, and research methods used by organizations.
As for home sales, there were 61,000 new sales in March 2025, up 7% from 57,000 in February, according to estimates in the latest MBA report.
“In product type, traditional loans accounting for 49.0% of loan applications, FHA loans made up 37.0%, RHS/USDA loans made up 0.9%, and VA loans made up 13%.”
An FHA loan is a mortgage guaranteed by the Federal Housing Administration, and RHS refers to a rural housing service loan.
The average loan size for new homes fell from $397,516 in February to $381,921 in March, according to the report.
