Finance

The Potential Effects of Trump's Tariffs on Mortgage Rates

Mortgage rates have remained fairly stable in recent weeks, staying below 7%, but changes may be imminent.

Melissa Cohn, William Raveis Mortgage’s Regional Vice President, joins Asking for a Trend to discuss how President Trump's new tariffs could potentially push rates even higher for homebuyers.

"Volatility often leads banks to adopt more conservative pricing strategies," Cohn explains. "It widens the margin above the 10-year yield (^TNX), increasing the spread that banks apply to 30-year fixed-rate mortgages. Volatility, like inflation, is generally undesirable. Until the volatility settles and banks feel comfortable lowering their margins, rates are likely to stay inflated."

Cohn also touches on the trend of many homeowners pulling listings, as they are locked into low mortgage rates and waiting to see how interest rates will shift in the spring.

TECH

The Future of AI: Balancing Innovation with Climate Concerns

In recent years, the tech industry, along with its energy-intensive data centers, has been a significant contributor to rising climate emissions. Microsoft’s emissions have surged by 30% since 2020, while Google’s have increased by nearly 50% during the same period. Additionally, tech companies are pouring trillions into artificial intelligence technologies, which will require even more energy. Natural gas is poised to meet much of this growing demand.

This situation presents tech with an opportunity for a dual benefit in addressing climate change — leveraging their AI capabilities to create solutions to slow global warming, while ensuring that the natural gas they use has the lowest possible methane leakage rate. Cutting methane emissions is the most effective strategy we currently have for slowing near-term warming and avoiding potentially disastrous climate tipping points. Preventing methane leaks also conserves natural gas, reducing waste, saving money, and aligning with President Trump’s focus on hydrocarbons.

Last year, climate emissions continued to rise, contributing to record global temperatures and triggering devastating climate events, such as the wildfires in Los Angeles. These fires are projected to cost over $200 billion in damages.

While $200 billion is a staggering figure, it pales in comparison to the $38 trillion in annual climate damages we are expected to face by mid-century as we approach dangerously high global temperatures. This could lead to the triggering of climate tipping points in vital ecosystems, like the Amazon and the Atlantic Ocean, potentially locking us into a chaotic, overheated planet for centuries.

To mitigate the worst outcomes, reducing methane emissions should be a top priority. Over the next 20 years, methane will be approximately 84 times more potent in warming the planet than carbon dioxide. For those like Donald Trump and his supporters who aim to expand the U.S. hydrocarbon energy sector, addressing methane leaks makes sense. This can be achieved quickly using existing technologies.

Big Tech should act now, during the early days of AI, to make a significant impact.

CRYPTO

Milei Promotes Crypto Token, Then Deletes Post Amid Scam Concerns

President Javier Milei endorsed a crypto token designed to support local Argentine businesses, but his promotion quickly sparked widespread concerns about a potential scam, leading him to delete the post.

Milei first introduced the LIBRA token on X late Friday, claiming that the funds raised would benefit small and medium-sized businesses in Argentina and emphasizing that the project was privately managed. In a follow-up text message, he clarified that he would not personally profit from the initiative.