3 MIN READ
Published July 10, 2024
As the 2024 presidential election approaches, the housing market is keenly watching the potential impacts of another Trump or Biden presidency. Both candidates have significantly different economic policies that will shape mortgage trends, especially for first-time homebuyers, housing affordability, and mortgage accessibility.
Here's what experts predict for mortgage trends in 2024, analyzing the potential influence of Trump and Biden's policies.
Mortgage Accessibility and Affordability: A Comparative Outlook
Trump's Potential Impact
If Donald Trump wins the 2024 election, experts predict several key changes in the housing market. Trump is likely to recommend that the Federal Reserve lower interest rates to stimulate economic growth. Lower interest rates could lead to a refinance boom and increased home sales, which would benefit first-time homebuyers. This move could make mortgage accessibility under Trump Biden more favorable, potentially boosting the overall housing market.
Tax cuts and deregulation, which were hallmarks of Trump’s first term, might continue. These policies would increase disposable income and stimulate demand for homes. The Tax Cuts and Jobs Act of 2017, for instance, boosted after-tax income, providing more capital for home purchases. However, lower rates could also increase housing prices and reduce supply, impacting housing affordability Trump Biden.
Biden's Potential Impact
In contrast, Joe Biden's approach is expected to focus more on affordable housing programs and addressing housing inequality. Biden's policies aim to promote diverse communities and increase housing accessibility. If Biden wins re-election, we might see continued support for first-time homebuyers through various federal programs designed to make housing more affordable. Biden’s policies could maintain a balance between boosting the housing market and ensuring it remains accessible to all income groups.
However, Biden’s focus on regulating the housing market to curb speculative investments might lead to a different kind of growth. This approach might slow down rapid price increases, thereby improving housing affordability Trump Biden.
The Impact on First-Time Homebuyers
The divergence in Trump and Biden's approaches becomes particularly evident when considering their impact on first-time homebuyers. Trump's policies may enhance mortgage accessibility but could lead to higher home prices, making it challenging for first-time buyers to afford homes. In contrast, Biden's focus on housing affordability aims to address these challenges directly, providing more opportunities for first-time homebuyers to enter the market.
Market Volatility and Uncertainty
Both presidencies come with their own set of uncertainties. Trump's unconventional policy approach might lead to market volatility, making some potential buyers hesitant. On the other hand, Biden’s regulatory measures could stabilize the market but might slow down rapid growth.
To Conclude…
As the 2024 election approaches, the future of the housing market and mortgage trends hangs in the balance. Trump's potential return could mean more accessible mortgages but higher home prices, whereas Biden's continued leadership might focus on enhancing both mortgage accessibility and housing affordability. First-time homebuyers, in particular, have much at stake, as the policies of each candidate will shape their ability to enter the housing market.
As voters head to the polls, the future of the housing market hangs in the balance, with each candidate offering a distinct vision for the country's economic and housing landscape.