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I, like just about everyone else, except maybe some in Atlanta and New Orleans who played on Monday Night Football, watched the first Presidential Debate of 2016. My analysis; it was interesting…
Personally, I don’t think that either candidate moved the needle either way. Clinton supporters believe she did well, as did Trump’s. Both scored some points on certain issues but overall it was more of same. A whole lotta talk about issues we already know about.
Although there was some discussion on the economy and its reported recovery, there wasn’t much said by either about the housing markets. Mr. Trump made some reference toward potential deregulation of business but did not specifically state what regulations or what businesses. Hopefully, he was talking about Dodd-Frank.
Trump further referred to the Fed keeping interest rates low to help make the economy appear to be recovering when in fact he believes we are in a ‘bubble’ that would burst if the Fed were to raise rates.
So, what does it all mean for housing and mortgage lending? More of the same. With rates low, we’ll continue to drive some new refinances, at least for a little while longer.
Low down payment and special programs aimed at first-time and low-to-moderate income home buyers, with the continued low rates, should help spur some home buying.
When the Fed believes the economy is strong enough, they will raise the rates. Ironically, the last time they did, the mortgage rates declined. Regardless, people will always need a place to live. A stronger economy will generate home sales one way or another.
Sales will be generated either by sales of affordable housing to investors to use at low rate rentals or by home sales to first-time and move-up buyers who are earning a better wage because of the improved economy.
So, we wait to see the new President’s plans for housing. In the meantime, lenders should be preparing for opportunities which may exist either way.
Millennials will move from their parents’ home at some point. Baby Boomers will look to either down size or right size. Immigrants will need places to live. All of these present lending opportunities.
Do you know who the home buyer of tomorrow will be? Are you preparing to service their needs? Somebody is…
