How Trump’s Presidency Could Be Setting Up Opportunities in the Housing Market
Donald Trump’s in office, and no matter how you feel about it, his impact on the housing market is already shaking things up. We’re seeing interest rates, economic policies, and the overall real estate market responding in interesting ways that could offer unique advantages to buyers—especially those ready to move past renting and jump into homeownership.
Mortgage Rates and Economic Policies—What’s Happening Right Now?
Let’s start with mortgage rates. Even though the Federal Reserve has lowered its rates recently, mortgage rates have stayed higher than some expected, partly driven by inflation and general economic conditions.
But here’s where it gets interesting: because of Trump’s administration’s approach to tariffs and economic policies, we could see mortgage rates remain somewhat elevated in the short term. But for buyers, this means that acting now could let them avoid potential increases down the road.
Last week we spoke about how waiting could actually cost you more in the long run.
Mortgage rates and the Federal Reserve’s policies are related but don’t always move in sync. Think of them as two magnets repelling each other—a shift in one doesn’t automatically mean a change in the other.
While inflation is inching closer to the Fed’s 2% target, we’re seeing some solid economic momentum that keeps the housing market strong and promising for buyers who get in now.
Trump’s Tariffs and Inflation—What Does This Mean for Homebuyers?
Trump’s proposed tariffs, particularly on goods from China, are another big factor. The administration is talking about a 60% tariff on Chinese imports and a 10% tariff on imports from other countries.
Sure, this could raise costs for some, but for the real estate market, it signals an opportunity: inflation might push mortgage rates higher, but it also pushes up the value of real estate, meaning that a home purchase now could lead to solid equity growth over time.
For homebuyers, a healthy economy and increased consumer spending mean strong demand for housing and potentially appreciating home values. While inflation may keep mortgage rates a bit higher than anticipated, the stability and growth of the housing market are real positives.
Affordability and Loan Programs Are Helping Buyers Get Ahead
One thing is clear: although rates are higher than they were in previous years, we’re not in unaffordable territory.
In fact, lenders are introducing flexible loan programs to make homeownership easier for first-time buyers. For instance, the 3-2-1 Buydown Mortgage offers a rate that’s 3% lower in the first year, gradually increasing to reach the original rate by the third year. This lets buyers ease into their monthly payments with an eye toward refinancing down the line if rates settle.
With home prices continuing to appreciate, programs like these are a win for those wanting to build equity without taking on sky-high payments upfront. In the current market, buyers can get into a home with some breathing room and potentially refinance later to lock in even more savings.
Unfortunately in this climate we are seeing prices continue to rise leaving many first time homeowners, especially millennials, unable to afford their first home. Which is why I always recommend you seek professional help early on in your search. Take the Home Buyer Quiz to see what you can qualify for!
Negotiation Power and Buyer Advantages—Why Now Is a Great Time
With many people taking a “wait-and-see” approach, buyers ready to act can find great negotiating power. Right now, sellers are more open to concessions—whether it’s closing cost assistance or even rate buydowns to help close a deal. And if you’re worried about missing out on favorable rates, remember: you can lock in a deal today and refinance if rates improve. The cost of waiting is much more than you realize!
Looking ahead to 2025, experts predict the balance may shift, with sellers regaining more of the upper hand. But for those ready to buy now, there’s a real opportunity to secure a great deal in this market.
What’s Your Take?
Does the housing market look as promising to you as it does to us? Share your thoughts below, and don’t miss out on joining our Facebook group for first-time homebuyers! Connect with other buyers who have similar questions, get real-time updates on real estate trends, and download our free First Time Homebuyer Guide.
Ready to make your move? Apply for a mortgage here to lock in a rate and take advantage of this thriving market!
Realtors specialized working with First Time Homebuyers?
Apply here to be one of our partners
Stay Connected:
