Tress Realty Group
  • Home
  • Investors
  • Homeowners
    • Selling >
      • Sale Prices
    • Buying >
      • Land
      • New Jersey 55+
  • News
  • About
  • Contact
  • Send Out Cards

Housing could become even less affordable under President Trump

11/9/2016

0 Comments

 
Picture
Housing is already too expensive for the droves of would-be buyers that are shopping in a market with limited inventory. 

This so-called 'new housing crisis' may worsen under the administration of President-elect Donald Trump, according to some housing economists. 

Trump said little about housing policy during his campaign, according to Matthew Pointon, property economist at Capital Economics. However, he proposed to loosen mortgage lending standards in a speech to the National Association of Home Builders (NAHB) in August. 

"Twenty-five percent of the cost of a home is due to regulation," Trump said, according to the NAHB. "I think we should get that down to about 2 percent." 

Of course, what presidential candidates say on the campaign trail and what they end up doing after winning don't always match. 

But in this scenario, banks could loosen lending standards and lower the credit scores required to qualify for mortgages, Pointon said in a note Wednesday. This would boost mortgage lending in the short term, and give more people a pillar of the American dream: homeownership. 

However, it could have ugly effects down the road.  

"The higher demand for homes would push up house prices, and pretty soon the next generation would find themselves struggling to qualify for sufficient mortgage finance," Pointon said. "And, as we learned just a few years’ ago, loosening lending standards can lead to dangerous housing and credit bubbles, which cause real damage when they eventually pop."

Ralph McLaughlin, Trulia's chief economist, said homebuyers in economically healthy Democratic states could be discouraged about the future of the US economy, and become less interested in making big purchases. In economically stagnant Republican states, however, homebuyers confidence and demand may rise.  

He said investors are buying US mortgage-backed securities as a safe-haven asset, pushing down yields, and reflecting confidence in the relative safety of the housing market. 

"Furthermore, the Fed is likely to delay a December rate hike because of global economic turmoil," McLaughlin said in a note. "Both effects mean short term win for borrowers, and we’ll likely see an increase in mortgage refinancing if rates continue to plummet."

Jonathan Smoke, the chief economist at Realtor.com, did not see Trump any immediate effect on the housing market.

"Because our November elections come at one of the slowest time of the year for sales, it’s unlikely we will see much disruption to the normal seasonal pattern," he said in a note.

"However, if the outcome has a big impact on financial markets that lasts more than a few days, we could see some disruption beyond the usual seasonal decline. Unfortunately we don't have a comparable period in history with good data to draw any sharper conclusions."

Source: Business Insider
0 Comments



Leave a Reply.


    Picture

    Tress Realty

    Tress Realty Group compiles some of the best real estate news, tips, and information for buyers, sellers and investors.

    Get started with your home search at www.TressHomes.com.

    Archives

    April 2020
    January 2019
    October 2018
    July 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    June 2013

    Categories

    All
    Chatham
    East-brunswick
    Fair Haven
    Glen Ridge
    Hoboken
    Home Sales
    Maplewood
    Millburn
    Montclair
    Ridgewood
    South Orange
    Summit
    Tress Homes

    RSS Feed

Home

Website disclaimer and copyright

​
Use of the information and data contained within this site or these pages is at your sole risk. If you rely on the information on this site you are responsible for ensuring by independent verification its accuracy, currency or completeness.  It is provided “as is” without express or implied warranty. 

Some properties which appear on this web-site may no longer be available because they are under contract, have been sold or are no longer being offered for sale.  Images uses for navigation may be for properties in different towns, and are not intended to be considered anything other than representative of the types of houses that may be found in a particular municipality.  All data and/or search facilities on this site are for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties that consumers may be interested in purchasing.

Tress Realty Group cannot guarantee the accuracy of the IDX/MLS data created by outside parties. Tress Realty Group further assumes no responsibility for any misleading content or incorrectly listed information due to such negligence. All ancillary information presented on this web-site is not guaranteed and should be independently verified by the users of this site. Tress Realty Group makes no warranty, either expressed or implied, as to the accuracy of the data contained within or obtained from this web-site.

Tress Realty Group accepts no liability for any interference with or damage to a user’s computer, software or data occurring in connection with or relating to this Site or its use or any website linked to this site.  Further, Tress Realty Group has provided Hypertext links to a number of sites as a service only. This should NOT be taken as implying any link between us and those various organizations or individuals.

Disclaimer: this website may be supported by ads and participation in affiliate programs. We may earn a commission when you click our links. The information included in this post is for informational purposes only and should not be taken as legal or financial advice.

Site copyrighted by Tress Realty Group LLC  © 2016-2022, all rights reserved.
  • Home
  • Investors
  • Homeowners
    • Selling >
      • Sale Prices
    • Buying >
      • Land
      • New Jersey 55+
  • News
  • About
  • Contact
  • Send Out Cards