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.
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