GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
Interestrateshave gone from historic lows to levels we havent seen in more than a decade.
If Trump wins a second term as president, his policies could positively and negatively affect the housing market.
Keep reading as we discuss somepredictions for the housing market if Trump wins the presidency again.
This has led to higher mortgage rates, which could change under a Trump presidency.
While the president does not directly control interest rates, the administrations fiscal policy can influenceinflation and economic growth.
However, just because Trump wants lower interest rates doesnt mean they will happen.
Interest rates also depend on the economic conditions and the Federal Reserves independent assessments.
Less Regulation Could Have Positives and Negatives
Trump is overtly against excessive government regulations on the economy.
If Trump were president again, he would likely loosen regulations on businesses and consumers.
This could mean more relaxed lending standards and potentially lower mortgage costs.
This could lead to increased demand for housing since it would be easier for people to purchase homes.
However, too much deregulation can also come with risks.
For example, borrowers can be approved for loans that they cant afford to pay back.
Since this was one of the contributing factors in the 2008 financial crisis, it worries some financial experts.
Some of these tax cuts or modifications could affect the real estate market.
This could include an interest deduction cap on mortgages and changes to capital gains tax.
Trade Policies and Housing Prices
When Trump was president, he launched a trade war with China.
These trade policies can have wider economic effects that indirectly impact the housing market.
And we will put millions of our people to work as we rebuild it.
If he is elected to a second term, the affordable housing shortfall could continue to widen.
Things like the unemployment rate or geopolitical events.
The Fed would then cut interest rates to stimulate the economy, leading tolower mortgage rates.
However, if unemployment decreases under Trump, housing prices could continue to increase.
Existing homeowners with low rates will be unmotivated to sell, and new homeowners will face low inventory.
Like tariffs, foreign wars could also disrupt the trade of resources needed forhome construction and renovation.
More From GOBankingRates
Share This Article:
