More on Trump and Housing

Market News

Earlier we touched on what the new Trump administration may mean for the California housing market. Needless to say, speculation continues and the San Francisco Chronicle has weighed in with the following points:

  • Increasing infrastructure spending and cutting mortgage regulations would seem to be a boon for housing but could increase the deficit which, in turn, would raise interest rates.
  • Deporting undocumented immigrants would ease the demand on rental units which might actually create a surplus of housing.
  • Tariffs on imported goods might result in a decrease of foreigners buying American real estate.

it’s impossible to gauge the short-term effects of the election as the housing market is entering it’s seasonal slowdown. Some analysts termed the election a “non-event” in terms of the current market and others see the longer-term ramifications as not making a big difference.

What the Trump Administration May Mean for California Housing

Green Escrow | Real Estate News

A new post in Pacific Union Economic Straight Talk discusses the possible economic and housing market implications of the incoming Republican Administration. Since deregulation was part of Trump’s platform it’s possible to see the rolling back of the Dodd-Frank Wall Street Reform and Consumer Protection Act was seen by many as limiting access to mortgage credit, especially for those with poorer qualifications.

Mortgage rates will probably continue to rise, although not beyond the 4 to 5 percent range which is still low by historical standards. Given the current affordability problem, however, adding in higher interest rates will not be good news.

Finally, Trump’s campaign promises to abolish trade agreements, to remove favorable regulation on alternative energy, to deport illegal residents and to end skilled-immigrants visa program may all have negative effects on California’s growing economy, which will, of course, hurt the housing market.