How the 2024 Election Could Impact the Housing Market

The results of the 2024 Presidential Election are in, and according to Redfin, 38% of early voters prioritized housing affordability when choosing their candidate. With President-elect Donald Trump set to return to the White House in 2025, let’s look at how his policies could impact the housing market. Housing Affordability Throughout his campaign, Trump pledged to make housing more affordable with plans to cut regulations and introduce tax incentives to lower building costs, aiming to boost home construction. If builders find it easier to develop new homes, the increased supply could help balance out high home prices. Potential Price Pressures One area to watch is Trump’s proposed tariffs. While these may help U.S. industries in some sectors, economists suggest they could drive up costs for construction materials. This could lead to higher prices for new homes and potentially push up inflation, which might put upward pressure on mortgage rates in the long term. Tax Cuts and Economic Growth Trump’s tax plan includes extending 2017 tax cuts and introducing new ones aimed at fueling economic growth. For many Americans, lower taxes mean more take-home pay, which can make affording a home easier. However, the long-term effects on the housing market will depend on how these cuts influence the economy overall. The Role of the Federal Reserve The Federal Reserve has been actively working to keep interest rates low, supporting both the economy and the housing market. If this trend continues, mortgage rates may stay relatively stable, even if inflation rises. It’s clear that housing affordability will continue to be a national priority, but the real impact will depend on how Trump’s policies are implemented in the coming years. If you're considering buying a home or refinancing, now may be a great time to consult with a mortgage professional. Follow this link to connect with a UMortgage Loan Originator in your area to get started!