NEWPORT NEWS, Va. (WAVY) – Two experts on the economy are trying to see their way through murky indicators as they lay out their forecast for Hampton Roads. Old Dominion University Professors Bob McNab and Vinod Agarwal shared their insights Friday morning with a Peninsula Chamber of Commerce crowd at the Holiday Inn.

“Consumers and businesses are increasingly sour about the prospects for economic growth over the next year,” McNab said.

Agarwal talked about Trump administration policy with tariffs.

“Off again, on again, off again, on again. That does not help,” he said. “We’d rather have a policy whether we like it or not. Once you have policy, we can then plan our lives. We have proposed cuts in NASA budgets, proposed cuts in Jefferson Labs.”

Earlier this year, McNab was calling for growth of more than 2.5% — provided there were no major changes to trade, immigration, tax and spending policies.

“We’re now forecasting that the U.S. will grow by less than 1.5%,” McNab said.

“Virginia will grow by 1%. On the other hand, Hampton Roads may grow more than 2%,” because government spending on defense is expected to increase and “provide a large cushion for the Hampton Roads economy,” Agarwal said.

McNab also mentioned the uncertainty surround the Port of Virginia. “Even though the port is not as vulnerable as ports on the West Coast to tariffs, it still will experience some of the impact of changes for tariffs over the coming months.”

And if the budget plan known as the Big Beautiful Bill passes, buying a home will get tougher.

“Mortgage rates are high, expect them to stay high,” Agarwal said. “Get used to higher interest rates.”

“If you are looking for a home, we’re in an environment where interest rates are much higher than they normally would be,” McNab said.

McNab says the the best thing to do right now is prepare, and not panic. Take a look at your finances; see what you could cut out of your budget to increase your savings.