This Article Is About he Housing Market To Remain Stable During Trump Impeachment Process
Many homebuyers are in jitters whether the Housing Market To Remain Stable during President Trump’s Impeachment Process.
- Experts expect the Housing Market To Remain Stable during the impeachment process of President Trump by the Democrats
- However, experts do expect major volatility in both the stock markets and mortgage rates
- Housing demand remains strong despite all these talks about the impeachment of the President
In this article, we will cover and discuss the Housing Market To Remain Stable and how it will affect homebuyers.
Formal Impeachment Announcement Of The President
The majority of the Democrats in Congress have been pushing to have President Trump impeached.
- They finally pulled the trigger and Nancy Pelosi announced the formal impeachment inquiry against President Donald J. Trump
- The announcement came on Tuesday evenings
- The reason for the impeachment inquiry by Democrats is over concerns and allegations that President Trump pressured Ukraine into meddling in the 2020 elections by having Democratic Presidential Candidate Joe Biden and his son Hunter Biden
This the third U.S. President that had an impeachment process started.
Should Homebuyers Be Worried In Buying During Political Unrest?
In general, the housing markets are dependent on the economy and national financial news. Factors that affect the housing market are the following:
- Dow Jones Industrial Averages and other securities markets
- Unemployment numbers
- Employment rates
- New job creations
- Consumer confidence
- Interest rates set by the Federal Reserve Board
- National and Global Breaking News
Mortgage rates normally tank with bad economic news. With good news, mortgage rates rise. The stock market is not being affected by the impeachment announcement. This is a good indication that the housing markets and mortgage rates will not be affected.
Stock Market Versus Mortgage Rates And Housing Market To Remain Stable Chances
In general, when the stock market plunges, mortgage rates go down.
- If the start market rises, mortgage rates go up
- The stock market has been going up after the impeachment announcement
- This is a good sign that the market is not concerned about the impeachment inquiry
- Mortgage rates seem to be not affected either
- There should be no interruption on the bull housing market nationwide
- With the exception of certain high-taxed states, we are experiencing the biggest and longest bull housing market in history
Homebuyers sitting on the sidelines should not be concerned about the impeachment news and the impact it has on the housing markets.
Consumer Confidence Level Is Key To Housing Market
What drives a strong housing market is high consumer confidence levels.
- In most cases, a home buyer will only pull the trigger to buy a home only if they feel secure about their employment and wages
- Most Americans feel good about the economic numbers and are discounting the impeachment inquiry
- The generous consensus by Americans is that the impeachment inquiry is nothing but a political ploy by the Democrats to unseat a duly elected president because they do not like him
- However, President Trump seems to honor all of his campaign promises
- We have record unemployment numbers, low-interest rates, historic record stock prices, and a growing economy
Inflation is low and there is no fear of a recession in the near future.
What Experts Say
Alex Carlucci of Gustan Cho Associates said the following:
There’s been a lot over the last year. It’s a continuing narrative of uncertainty. Right now there’s nothing to suggest [impeachment] is providing additional uncertainty. Nor will it be shocking people into changing their behavior. The proceedings are unlikely to change how the majority of people across the U.S. approach their real estate acquisitions or sales. People are going to move based on life changes: having kids, marriages, retiring. Those are the drivers. Most evidence that we can look at for how things like this have an effect on the market show it’s usually pretty small if any.
How Political Chaos Affect Mortgage Rates And Housing Market
Mortgage rates are very volatile during times of political unrest. However, as long as the economy continues to be strong, it will not affect the housing market. Mortgage rates are at a 3-year low. Refinances are at record levels. The housing market is on fire with no signs of any slowdown. Inflation is at historic lows. There is no fear of inflation. Consumer confidence levels are at its highest level since 2011. Many are expecting further rate cuts by the Feds. There are certain states like New Jersey, California, Illinois with housing weakness due to high taxes and high cost of living. This is a developing story. Gustan Cho Associates Mortgage News will keep our viewers updated with further developments in the coming days.