How will President Trump influence the housing market?

trump

8 Ways our new commander-in-chief could affect homeownership

Summary of the Inman News article by Thomas Mitchell. For the full article CLICK HERE.

Use real estate to kickstart the economy?

Trump has said he is interested in boosting homeownership and deregulating the financial market.

Mortgage Rates?

There are too many factors involved to predict interest rates. However, according to Ralph McLaughlin, Trulia chief economist, we should have a short term win for borrows.

Make it easier to borrow money?

Trump has not specifically mentioned addressing the premiums for FHA loans or cutting guarantee fees for Fannie Mae or Freddie Mac, so this one is a wait and see.

Cutback in federal programs?

Again, Trump has not indicated which programs he would target for cutbacks.

Regulations

  • Banking regulations
    • The Republican party approved in 2016 platform in July which includes significant changes to the Consumer Financial Protection Bureau
    • There has been talk of repealing the Dodd-Frank Act
  • Building regulations
    • In August, Trump said that, other than the energy industry, there is no other industry more overregulated than the housing industry and he wants to get the cost of regulations to build a house down from 25% to 2%.
  • Employer/independent contractor regulations
    • Trump has said he wants to replace the Patient Protection and Affordable Care Act with something affordable.

Mortgage interest deduction

Trump’s plan, last year, specifically mentioned he would preserve the mortgage interest deduction; however, his current plan does not go into detail about the mortgage interest deduction, so we’ll have to wait and see on this one.

Reforms at Fannie Mae or Freddie Mac

No direct comment on these enterprises; however, they are projected to run out of money in 2018 so he’ll have to come up with a plan.

Immigration

Immigration reform won’t be easy to pass and Trump’s immigration policy has undergone many changes since he first announced his candidacy, so it’s difficult to determine how this will influence the real estate market.

Leave a Reply

Your email address will not be published. Required fields are marked *