“The outcome of the election brings something to the equation that nobody likes, and that’s uncertainty. Consumers get wary and businesses get wary, and investors will be pricing the uncertainty into their decisions” — Pacific Union International Chief Economist, Selma Hepp emphasized as Republican Candidate, Donald Trump wins US Presidential Race.
Hepp stated further, “Additionally, Trump has not offered a plan for the housing market other than rhetoric. In the least, we know his administration does not agree with the current state of the Dodd-Frank reform and will try to change that. But how it all plays out—it’s too early to tell.”
»How do the rates look so far? Find out now»
Housing Finance’s Future still Dark
Mortgage rates are one of the prime drivers in the housing market. During his presidential campaign, Trump barely made a highlight on the housing finance system. Industry experts believe that housing finance’s future will still be dark as the president-elect may not have stated firm priorities on housing during the campaign.
For the first time in more than eight decades, Americans will witness a change of power as the Republicans hold the White House and the U.S. Government. We will feel this change soon when the president-elect takes his first courses of action and where these will lead the country’s economy.
Uncertainty does not alway Spell out Disaster
Trulia Chief Economist, Ralph B. McLaughlin, stated, “A rocky road is no fun to tread on, but at least we know where the obstacles lay. Uncertainty tends to drive investors towards safe bets, such as U.S. bonds, which pushes down mortgage rates and makes borrowing cheaper.” He sights that the uncertainty is not a surefire path to economic downfall.
Our lenders can answer your questions about FHA loans here.
According to experts, Trump’s strong will towards the enhancement of economic activity will have a beneficial impact. This would later correlate to lower mortgage and housing rates if the economy strengthens during his administration.
We can only be certain once Donald Trump transitions to power and takes economic actions. The coming months will prove and set the pace on how the housing market and economy’s future will be like in a Trump administration.
FHA has been known to have guaranteed loans to help eligible middle and low-income families afford housing. The rate downhill a few months back in home financing played well for first-time homebuyers and homeowners alike.
A slight rise in rates was felt during the run-up to and even after the election. It is expected to normalize as the election hype recedes in the coming days. However, the uncertainties in the housing economy in a Trump presidency may mean that the rise may not go away easily. Borrowers may face some difficulties if rates keep their position or, worse, rise up even more.
Since Trump has not mentioned about concrete plans to change the current house finance system, it may mean that there is a less likely chance that the FHA guidelines will change. But circumstances will tell if this is true because other factors could also come into play, especially in the region’s economy.
Certainly, the HUD will keep its mission to make housing accessible to each American. Slight changes may happen, rates may go up a notch, but HUD will most likely devise ways to help homebuyers and owners afford their home loans, should the need arise. It is best to be watchful for the turn of events in the coming months and the trends on the housing market to effectively plan out your next steps in homeownership.