Following the 2016 election of Donald J. Trump, the stock market soared, making housing more expensive. Freddie Mac's data shows that the average rate of a 30-year fixed mortgage rose to 4.3 percent right after the election.
According to a new report from Fannie Mae, high housing prices in the market have affected consumer confidence. CNBC reports that half of the nation's housing markets are considered overvalued, with prices boosted by low interest rates. However, the Federal Reserve will be reversing that policy. "If the public understood Fed policy, renters and those millennials looking to buy a home would be marching on the Eccles [Fed] Building," says Peter Boockvar, chief market analyst at The Lindsey Group.
"The important question here is whether the optimism we saw after last year's election has manifested itself into the housing market this year. We aren't seeing signs that's the case," said Ralph McLaughlin, chief economist at Trulia. "We were expecting a possible bump in housing and we haven't seen that yet ..."
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