-
Mortgage and Real Estate News Monday February 10th 2025
Mortgage and Real Estate News Monday, February 10th, 2025: In the past few weeks, Trump has moved to cut mortgage rates while trying to make housing more affordable for many. These plans should take effect on February 10 of 2025:
Executive Order on Emergency Price Relief
Back on January 20, 2025, Trump passed an executive order “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis”. The order looks to get rid of numerous regulatory burdens, which, according to Trump’s administration, make up around 25 percent of the cost to build a new house. This, if enacted, would make it cheaper to build houses, which in turn increases the supply of houses and reduces their prices, making homes more affordable for many. Inflation has skyrocketed through the roof, but wages have not kept up with inflation. Many home buyers are priced out of the market. Many others who never purchased a home before just gave up on becoming homebuyers and homeowner. Many homes are inflated at skyrocketing home prices, and with high home values come high property taxes. To add fuel to the fire, homebuyers are experiencing high homeowners insurance, and everything from landscaping to remodeling is 30% or more than it used to cost. Lenders of home equity loans and renovation loans are very leery on whether the homeowners/borrowers have the ability to afford the new loan.
Focus on Reducing Long-Term Interest Rates
As stated by recently appointed Scott Bessant, other attention-grabbing moves are also on the way, like cutting long-term interest and mortgage rates. The government proposed long-range growth strategies, like energy independence and cutbacks in regulation, to achieve these objectives. They do, however, acknowledge that there are too many variables in the market to assume these actions will produce any short-term shifts in aid for long-term interest rates. In three weeks since taking the oath of office as the President of the United States, President Donald Trump has made historic changes, like auditing where our taxpayer dollars are going to and the vast suspicion of government corruption in the USAID, the U.S. Department of Education, the Human and Health Administration, HUD, and potentially the CFPB. The CFPB was created and launched to protect the consumer, but President Donald Trump and his staff see it otherwise, where the CFPB is out to protect the big banks and big lenders and not the American consumer. President Trump’s DOGE Department of Government Efficiency, headed by Elon Musk, is uncovering trillions of taxpayer dollars that are unaccountable and could potentially be a money laundering scheme and kickback scheme by government workers and politicians. President Donald Trump is considering eliminating the CFPB, the Federal Reserve Board, and other wasteful government agencies that are not productive or offer no benefit to the American people. Remember that USAID is just one of many government agencies where thousands of unproductive workers are on the federal government payroll. Just two weeks ago, President Donald Trump expressed and hinted to Fed Reserve Board Chairman Jerome Powell to lower rates to stimulate the economy, especially the housing market, and lower the cost of borrowing money. However, Jerome Powell did not heed President Trump’s advice and kept interest rates unchanged. The economy is not at all what the Biden-Harris administration said it was. The economy is worse than the news expressed, and many numbers that were released need to get modified with accurate data, especially unemployment numbers, the Consumer Price Index, and bankruptcy and foreclosure rates. Just in three weeks, the Trump administration has come up with trillions of dollars that have not been accounted for.
Deregulation and Utilization of Federal Lands
Lowering the cost of housing by lessening the degree of restrictions on federal land intended for planned housing construction is another goal of this government. President Trump signed an executive order that hurricane-devastated areas in North Carolina and Southern California’s wildfire areas in Los Angeles County were on track for a fast-track permitting or no permitting. California, especially, is notorious for its lengthy permitting process, even when it is a major emergency like the Pacific Palisades California Wildfire.
The goal is to increase the available housing supply that can mitigate the home prices and enhance affordability through easing red tape on construction permits as well as making more land available for development.
The Effect Executives Orders Have on Mortgage Rates
Subsequent to the release of certain executive orders, there is evidence suggesting that there is a drop in mortgage retail prices. For example, after certain announcements such as tariffs and other related policies, there was a significant drop in rates that were already near peak levels. It is likely that the execution of these plans by the administration will create a favorable environment for homebuyers in terms of affordability.
Although these measures intend to assist mortgage borrowers and help alleviate the housing cost burden, the measures taken will only be assessed after the major stakeholder accomplishes the expected market reaction and networks and responses policy implementation. The American people are very confident President Donald Trump will do the right thing to avoid another housing and financial meltdown that has been rumored for years—that this housing correction will be worse than the 2008 real estate and financial crisis. Something’s got to give, and the best news for Americans is President Donald Trump is doing something about our current crisis. It is ridiculous that a family needs an average of $124,000 gross per year to be able to afford an average modest home in the United States. After paying the mortgage, utilities, and expenses, Americans will have very little left to survive.
-
0 Replies
Sorry, there were no replies found.