Winter slow down or something more?
The past few weeks have been interesting in the Carson City market.
Inventory and interest rates have increased and price reductions have been coming more apparent. Is this a sign of the holidays before us,political fear or a combination of the two emerging? We know if it’s a winter slow down, things will pick up like previous years in the spring.
Should we expect to pick up, flat line, increase or decrease? Let’s take a look at eight possible outcomes the future president may have on the housing industry.
Will he use real estate to kickstart the economy?
Trump has used real estate himself as an investment, and although he hasn’t said much about his housing platform, what he has said indicates that he’s interested in boosting homeownership.
Much of Trump’s platform has centered around deregulating the financial market in order to more fully revive it, and that alone could also give a boost to real estate.
What will happen to mortgage rates?
Many different factors affect mortgage rates — they change each day based on what the market is doing — and election night, we saw a little bit of market panic, which can be expected due to an unforeseen event (most polls showed a Clinton win). Rates are up to 4% which is ½% higher than a month ago.
Could it become easier to borrow money?
One way that a Trump presidency could make it easier for consumers to own homes would be to lower premiums for FHA loans or cutting guarantee fees for Fannie Mae or Freddie Mac. Neither of those have been specifically mentioned as priorities for his campaign — and Fannie and Freddie present their own problem, as seen below.
Will there be cutbacks in federal programs?
Some programs, such as those involving affordable housing, might have more of an effect on real estate than others, but Trump has not indicated which programs he would be most likely to target for cutbacks. The Low Income Housing Tax Credit and Section 8 housing vouchers — could be on the table for reform.
In July, the party approved its 2016 platform. That platform includes significant changes to the Consumer Financial Protection Bureau (CFPB), and there has been talk of repealing the Dodd-Frank Act, which imposed
regulations on lenders, and replacing it and the CFPB with something else. Loosening regulation on lending could potentially boost homeownership by making it easier for consumers to obtain loans.
Will the mortgage interest deduction go away?
Last year, a tax plan that Trump shared specifically and explicitly mentioned that he would preserve the mortgage interest deduction..
Will there be reforms at Fannie Mae or Freddie Mac?
Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs), are currently under government conservatorship — and although figuring out what to do with the behemoths is bound to be difficult, it’s also likely to fall into Trump’s lap.