Mortgage rates rose sharply in the wake of Election Day but more drastic changes could be in store for the housing market once Donald Trump takes office early next year, according to the National Association of Realtors.
During his campaign, the billionaire real estate tycoon expressed support for measures that would limit the federal government's involvement in housing. Additionally, the president-elect plans to lower taxes for middle class families, meaning more Americans may have easier paths to homeownership. Those interested in acquiring luxury properties stand to benefit as well, as Trump also plans to introduce new deductions for individuals in higher brackets.
However, some of his other policies are less buyer-friendly and could actually require house hunters to submit larger down payments. Plus, many real estate experts believe predatory lending could once again spike under the Trump administration. He and Republicans in Congress hope to repeal Dodd-Frank Wall Street Reform and Consumer Protection Act, both of which established governing bodies that oversee lending practices. Without this oversight, unethical financial institutions might be able to take advantage of first-time buyers just entering the market.
In the weeks and months to come, home buyer confidence is expected to fluctuate, mostly due to the differing outlooks Democrats and Republicans have regarding the future of the country, MarketWatch reported.
"Home buyers in economically healthy blue states will likely be rattled and more hesitant about the future of the U.S. economy, which will curb their interest in making large investments," Ralph McLaughlin, chief economist for Trulia, told the publication. "In economically stagnant red states, on the other hand, home buyers will likely feel a surge of confidence that could bolster demand."
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