The Trump Effect: Mortgage Industry
Now that Trump has been sworn in and has assumed his position as Commander-in-Chief, what affect does his presidency have on the mortgage industry? Read on to find out the Trump Effect on the mortgage industry:
- Interest Rates
- Since November 8, 2016 mortgage interest rates are up .625% on FHA/VA and .75% on Conventional loans. (Note: The federal open market committee (FOMC), raised interest rates .25% on December 14, 2016. The first meeting of 2017, FOMC voted unanimously to maintain the interest rate. Three additional rate hikes are anticipated in 2017. Fed funds in a factor of the overall mortgage interest rate)
- The Stock Market
- The Dow Jones Industrial average rose 5.4% after Trump’s election, the best weekly performance in 5 years.
- Income tax brackets will be move from 7 to 3. The top tax rate is going down from 39.6% to 25%. There is talk of eliminating the alternate minimum tax.
- Construction of New Homes
- Construction of single-family residences has increased. “Single-family starts, on the other hand, rose 1.9 percent month-over-month to 823,000 units.” (Realtor Magazine)
Lastly, Donald Trump has mentioned repealing the Dodd-Frank act which would, in my opinion, reduce mortgage regulations and enable lenders to get approved for more loans. If you have any questions regarding the above information or want more information regarding the mortgage industry and where it’s headed, feel free to give me a call at 615-970-2216 or send me an email at firstname.lastname@example.org. I will do my best to answer any and all of your questions and if I don’t have the answer, I will find out from someone who does.
Bankrate. “6 Ways President Donald Trump May Affect Your Wallet.” NASDAQ.com. Nasdaq, 09 Nov. 2016. Web. 10 Jan. 2017.
“Housing Starts Cool Off in January.” Realtor Magazine. N.p., 27 Feb. 2017. Web. 27 Feb. 2017.
Ben Protess and Julie Hirschfeld Davis. “Trump Moves to Roll Back Obama-Era Financial Regulations.” The New York Times. The New York Times, 03 Feb. 2017. Web. 27 Feb. 2017.