Housing Hurt
Interest rates, construction costs, and other indicators look problematic for housing trends.
President-elect Trump’s and Congress’ preliminary policy ideas look possibly problematic for housing. On one hand, dismantling Dodd-Frank should loosen lending standards and tax cuts will put more money in our pockets. However, higher interest rates and a shrinking supply of (illegal) workers will increase construction costs, as will increased infrastructure spending by raising worker wages due to rising construction worker demand. Lastly, if Fannie/Freddie are dismantled, borrowing costs will rise.
For more from Elliot Eisenberg www.econ70.com.
