Will This Make it Easy to Buy Your First Home?

Is Donald Trump's new administration going to make it easier for the average American to buy a home? I'm a consumer advocate for first time home buyers across the country. This video is based on the questions that I get from first time home buyers all the time, especially during the election years. I don't know about you, but I've had enough of politicians telling me what matters, so I'd love to know what's concerning you now. Post election comment below with your questions so we can open up the conversation to what really matters to you. I don't care who's in office, I nobody's doing enough for first time homebuyers. So I'm going to be very critical of any policies and any promises and look deep to make sure that they're actually something that's going to help you and not just empty campaign promises. Trump's campaign promise was to restore our economy. A strong national economy means that home prices go up because strong is referring to the value of market assets. In this case, those assets are home prices. When the economy is going up and the home prices follow, interest rates become the main factor when it comes to housing affordability. The other factors affecting housing affordability, it's the lack of inventory in the housing market because of a shortage of home construction that's been going on for over a decade. Plus since the year 2000, rents have doubled almost every decade, preventing new home buyers from being able to save for a down payment. During Trump's 2016-2020 term, homes appreciated 15%. So that's about 15K on a $400,000 home per year of that administration. Most economists agree that these increases didn't have anything to do with Trump's housing policies during the first term. It had much more to do with the inventory shortage that began back in 2008. You know, supply and demand. Analyzing most of Trump's housing agenda remains somewhat murky. And this has been most economists evaluation of Trump's campaign promises. He was lacking actual definition in what he was pledging and how that would affect housing affordability. His main answers to the problem were to slash inflation to eliminate the immigration problem that he and J.D. vance said were a main factor in creating unaffordable housing. So as for the inflation policy change, inflation is already back to 2%, which is where it was in its first term. And as for immigration, it's been widely disputed by many economists, including a report from the Harvard Joint center for Housing Studies. The report stated that the two factors that were affecting housing affordability were the Higher interest rates and the post pandemic era spike in housing prices caused by low inventory. Quote the timing of the recent surge in immigration does not line up with the high growth in both rents and home prices that happened at the start of the pandemic. Housing demand during the pandemic has been primarily shaped by native born household growth in a time of constrained housing supply, AKA low inventory. And as a side note, immigration was actually at its lowest in the post pandemic era from 2020 to 2021. So while these campaign promises won't have a big effect on housing affordability, Donald Trump is proposing one major policy change that could affect mortgage interest rates. And that is is a big deal when it comes to housing affordability. Trump campaign has been quietly talking about privatizing Fannie Mae and Freddie Mac, taking them out of conservatorship. Fannie Mae and Freddie Mac handle about 70% of all the mortgages in the US and in 2008 during the housing crash, they were put into conservatorship to make sure that they stayed financially stable. The issue of ending the conservatorship or keeping the conservatorship or privatizing these companies, it's been debated widely for the last decade. In fact, they tried to get this process going during its first term, 2016-2020. And if you want to get deeper into this, I made this video right here that goes deeper into conservatorship or privatizing these companies. But for 2025, most economists don't see this happening anytime soon. Now we'll look at Trump's other housing policies that he pledged during his campaign. Using federal land, cutting mortgage interest rates, tariffs and reducing restrictions on home builders. We're going to have land released and on that land we're going to build housing. We're going to have housing built nationwide. The federal government owns about 27% of the land of the country. Problem is a lot of that land doesn't feel real homey and not where people want to build homes. Not to mention the infrastructure costs to get those neighborhoods up and running may offset any affordability that those houses could create. As for Trump's pledge to bring mortgage interest rates back down to 3%, the conservatorship might help a little bit with that. But without laying out any policy details, most economists don't see any path to where we're going to get interest rates, but back down to 3%. The average mortgage rate since the 1970s is 7.7% and that 2 and 3% mortgage rates that we saw. This was a one time strategy done by the banks to make sure that everyone stayed afloat. You may have heard that Donald Trump isn't getting along with the chairman of the Federal Reserve. That's Jerome Powell. Some of the President's elect's advisers have suggested that you should resign. If he asked you to leave, would you go? No. Now, the Federal Reserve acts independently from the administration when it decides to make cuts. And those decisions are based purely on the nation's economic factors. We'll see how this is going to play out. So keep watching here for more updates. One of Trump's biggest campaign pledges, tariffs. To me, the most beautiful word in the dictionary is tariff. It's for protection of the companies that we have here and the new companies that will move in. Now, this has been hotly debated by many economists. Tariffs also have another side. Isn't that something that you have to acknowledge? You could be many of them are concerned we're going to see a rise in inflation due to these tariffs. And when it comes to housing affordability, if the cost of goods increase to build your home, that means higher home prices. So let's break it down for housing. Trump says he can put tariffs on imports from other countries, like the resources that we need to build more homes. He says the other countries will pay the tariffs, keeping the cost of the goods the same and bringing more money into the American economy. The other side says, what if they say no? Or what if they increase the prices to offset the the price of the tariffs? Well, if that's the case, then housing affordability will see a little change. Now, this next policy pledge is something that I think could really help first time homebuyers. The deregulation on the new home builders. The issue is if these policies happen and the new builders have less regulation and less red tape and building homes are cheaper for them, will they pass the savings on to the consumer or will they line their pockets with the profits? Hopefully, if this means we're acting in a true free market, this will increase competition, which should create more competitive prices for the consumer. So currently with Trump's undefined policy initiatives, we don't have a lot of data to know what the future will bring. I'll be watching for the coming signs in these policy changes, but they're going to take time before we actually have all the data to see how they're affecting our economy and how it affects things for first time home buyers. So if this is something you're looking for and something you're interested in. Like subscribe and turn on all your notifications. This is the place where we bring nonpartisan, non, non biased information. Doesn't matter if it's red or blue. We're talking to you the first time, Home buyer. See you at the next video.