What Trump’s Interest Rate Talk Means for Hudson WI Real Estate in 2025

by Mark Johnson

As we move through 2025, there’s been renewed chatter about interest rates—and their impact on the housing market, especially here in Hudson, WI and the greater Twin Cities area.

Recently, former President Donald Trump made headlines by saying he would “demand” lower interest rates from the Federal Reserve. That comment sparked conversation, particularly among those buying or selling homes in Western Wisconsin, where rates directly affect affordability.

So what does all of this really mean for our local market?

Let’s break it down.

What Did Trump Say About Interest Rates?

In a virtual speech at the World Economic Forum in Davos, Trump called for the Fed to cut rates immediately. He cited falling oil prices as a key reason for easing monetary policy.

This came after the Fed had already cut its benchmark interest rate by one percentage point in 2024. Still, many economists believe further cuts are unlikely right now because inflation remains above the Fed’s 2% target.

Key Point:

The Federal Reserve operates independently and is guided by economic data—not political pressure.
Rate cuts may be discussed, but they’re not guaranteed or immediate.

What It Means for Hudson and Twin Cities Buyers & Sellers

If you're in the market—either buying or selling in Hudson, Western WI, or the Twin Cities metro—here’s what you really need to know.

1. Presidents Don’t Set Interest Rates

Despite bold headlines, presidents don’t control interest rates. The Fed does—and it bases its decisions on:

Inflation trends
Unemployment data
Broader economic performance

Bottom line: Even if Trump (or any politician) demands lower rates, the Fed won’t act unless the economic conditions call for it.

2. Higher Rates Affect Affordability

Right now, mortgage rates are expected to stay elevated into late 2025. That has a real impact on what buyers can afford—and what sellers can expect.

For buyers:

Higher rates = higher monthly payments
May need to adjust expectations on price or location

For sellers:

Pricing competitively is key
Be prepared for longer days on market, especially for higher-priced homes

Even with high rates, we’re still seeing movement in Hudson and nearby cities like River Falls, Stillwater, and Woodbury—especially when homes are priced right and well-prepared.

3. Inflation Still Matters Most

Even though oil prices are down, inflation in other sectors remains sticky—especially in services and everyday goods.

Because of that, the Fed isn’t in a rush to cut rates. They’re laser-focused on reaching that 2% inflation target.

What this means:

We’re unlikely to return to the 2–3% mortgage rates of a few years ago anytime soon
Buyers should budget accordingly
Sellers should expect more rate-conscious buyers

4. Don’t Forget: Local Market Dynamics Matter More

National trends are important—but here in Hudson, WI, local factors often carry more weight, including:

Job growth and commuting patterns
Housing inventory levels
Migration trends (like Twin Cities buyers moving to Western WI for affordability)

Homes are still selling in Hudson and surrounding towns like New Richmond, Somerset, and Prescott—especially when they’re priced realistically.

Pro Tip: Working with a local agent who understands both the Western WI and Twin Cities markets can help you make smart, strategic moves in a shifting market.

What Should You Do Next?

Whether you're buying or selling real estate in Hudson or considering a move across the border from the Twin Cities, here’s how to move forward wisely:

For Buyers:

Get pre-approved to know exactly what you can afford
Watch interest rates, but don’t wait too long hoping they’ll drop
Act fast if you find the right home—especially with limited inventory in some areas

For Sellers:

Price competitively from day one
Highlight affordability—a smaller mortgage at today’s prices can still work for many buyers
Work with a local expert who understands how to market in a higher-rate environment

Final Thoughts: Stay Informed, Stay Local

Trump’s remarks may make headlines, but the real estate decisions that matter happen closer to home. In areas like Hudson, WI, Western Wisconsin, and the Twin Cities, real estate is driven by a mix of national policy and local market realities.

If you’re unsure what move to make next, reach out to a trusted local real estate expert who knows how to connect the dots between economic headlines and what’s actually happening in your neighborhood.

Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area

Click here to read the full article: https://money.usnews.com/loans/mortgages/articles/trump-cant-demand-lower-interest-rates-from-fed