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Now that all the so called experts realize that they called the Presidential election all wrong they are backtracking trying to explain why. The Clinton supporters are all pointing blame at whoever they can think of that may have done something wrong to cause their loss. The Trump supporters claim they knew he would win all along. Right!
People at all levels, and in all walks of life, are trying to come to grips with the reality that Donald Trump will be our 45th President.
The mortgage banking industry is no different. Traditional thinking all along was that Hillary Clinton would be our next President. Although the industry was working with both candidates on projected housing policy, very few seriously thought that Mr. Trump would win. Now, it’s time to take him seriously.
The forecast is that refinances will dry up, home purchases will increase and interest rates will rise. But wait, wasn’t that the same forecast we heard before the election? So what’s changed? Could it be that the President has very little direct impact on rates, housing policy, and the mortgage markets?
Maybe, it’s the other way around. Do the economy, the housing market, and interest rates have an effect on who gets elected President? Could it be the policies of an administration that directly affect employment and wages will determine the ability of consumers to buy and continue to afford their homes? Determining if consumers can afford what’s available is what will directly affect rates, home prices and values,
What comes first? The housing policy, which determines economic growth, or economic growth which determines the housing policies?
Building anything starts with a strong foundation. So, it looks to me that the President is responsible for ensuring an economy with strong employment and the opportunity for growth in business and wages. I believe that the more people working, making better wages, increases the potential for business and economic growth, making way for a better housing market.
A better housing market will offer more opportunity for lending and investment making way for a stronger economy. So, let’s hope that Mr. Trump does what’s best for our economy, not what’s best for any special interest groups or industry.
Whether we voted for Donald Trump, or not, he will be our next President. We owe it to him to give him the chance we gave all preceding Presidents. Hopefully, he will do what is needed to grow our economy, increase jobs and make for a better, stronger housing market.
When he does, lenders need to be ready to provide the products and services the new home buyers will need. I’m optimistic, are you?
