Housing Market Update: Housing Under Trump
What will the housing market look like with a Trump presidency and how might it affect you?
No experts seem to know for certain because he hasn’t put out any actual policy plans. Here are some of my thoughts.
Mortgage Lending – Trump is looking to de-regulate the financial industry to kill Dodd-Frank and and Consumer Protection Act which would open the lenders to lend as they did before the housing bubble so more consumers can have access to loans. HELLOOOO SUBPRIME!
Building Regulations – He also wants to cut as many regulations for builders as possible, which could possibly mean more affordable homes for consumers or simply more profit for builders. If a company has a chance to sell any product for the same amount while lowering their costs, how many times has that actually been passed onto the consumer instead of being kept as profit? For example, gas and airline prices.
Mortgage Interest Deduction - Will be staying. More money back into your pocket if it makes sense to itemize your deductions.
Mortgage rates – In the short term, Feds will most likely delay their interest rate hike this December. In the long term, Trump has repeatedly come out against the Obama administration for keeping interest rates artificially low so there will probably be a few rate hikes during his presidency. As rates rise, housing prices will either level off or drop due to the decrease in buying power.
As a buyer, if you can afford a payment on a $500k home now, you might only be able to qualify for a $450k home if interest rates rise drastically. As a seller or investor, you might be losing out on tens of thousands of dollars based on how much the values drop because of an interest hike.
If you’re looking to buy, sell, or invest, NOW is a great time!
Call/text us anytime at 951.888.0887 and we can set aside some time to lay out a plan for your real estate goals.