New Lumber Deal May Cause U.S., Florida Home Mortgage Cost Hikes

Potential buyers have many issues to consider as they think about applying for a Florida home loan. As you weigh points, closing costs, down payments and interest rates, however, an unexpected financial wrench may be thrown into the process, as well.

Recently, the U.S. and Canadian governments reached an agreement on softwood lumber that, some critics contest, will make national and Florida mortgage costs more expensive for hundreds of thousands of prospective owners.

A trade group representing U.S. lumber companies, home builders, building supply retailing, and consumers is far from happy with the situation.

Using statistics from the U.S. Census Bureau, the American Consumers for Affordable Homes (ACAH) calculates that up to 300,000 households could be priced out of the housing market because of the duties that would be collected by the U.S. on lumber from Canada.

Simply put, ACAH states, those duties shouldn’t be collected. Washington hasn’t been able to make a compelling case for collecting the $1 billion worth of the duties before the World Trade Organization or through the NAFTA dispute process, according to ACAH spokesperson Susan Petniunas. It will negatively affect affordable housing.

“No rational Canadian company will ever use the NAFTA dispute process again if Canada agrees in this deal that it has given up its right to get all illegally collected duties back,” Petniunas said in a press release.

We know this sounds complicated, but it’s an issue - as stated above - that could directly affect numerous first-time home buyers. It’s just another reason to consult with a Florida home mortgage broker and make sure you’re aware of every detail on your home loan.

We can help.