What’s your favorite song about houses? 🏠🎶 We’re fans of the 80s bop “Our House” by Madness. Flo Rida’s “My House” comes in close second. Don’t worry, your guilty pleasures are safe with us. 🤫
Trump’s rolling out policies left and right. Keeping up is a full time job and we’re puttin’ in that work, baby. 😅 If you’re a homebuyer, read on to get the skinny on how everything impacts the housing market.
Here’s Five Fast Facts on Trump’s policies and the housing market:
- 🏘️ Raise the Roof - An uncertain economy and Wall Street might be good news for the housing market. Over the last several weeks, interest rates on 30-year fixed-rate mortgages have dipped under 7%. New mortgage applications rose by over 11% in the first week of March. That’s a 31% improvement from last year. We’re also seeing refinances increase as people take advantage of lower rates.
- 📊 That’s Interesting - Tariffs, inflation, and regulatory uncertainty all have an impact on interest rates. While the Fed’s expected to lower interest rates again later this year, higher-than-expected inflation, price increases on necessities, and labor market conditions could keep rates higher for longer.
- 🛠️ Hammer It Home - In February, new single-family home construction rose by over 11%. While that’s pretty impressive, it doesn’t tell the full story. Permits for new projects fell a little bit (by 0.2%). That means the housing supply could remain limited.
- ⚖️ Policy Party - Tariffs could have a big impact on builders as they drive up construction costs. This could keep us in a housing supply crunch. Trump’s immigration policies could also impact the construction industry. With less workers to go around, labor costs go up.
- ❌ No Soup For You - A slow economy may also make borrowers less likely to apply for loans…and lenders less likely to approve. According to a recent survey, the number of people who haven’t applied for new credit fearing rejection hit the highest level since October 2013.
🔥Bottom line: Even in a recession, if mortgage rates continue to go down, home sales will rise. However, if you’re not in the club that can afford a down payment or get approved for a mortgage, you could be left hanging on the sidelines…at least for now. Ever wonder where the average American paycheck goes? We break it all down here!
Buying a new home this year?
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