Trump will inherit a housing market creaking under the strain of high prices and high interest rates

Published On Jan 18, 2025, 8:05 AM

The article discusses the challenges facing the housing market as President-elect Donald Trump takes office. Home affordability has significantly declined with average home prices and mortgage rates rising sharply. Many homeowners are hesitant to sell their properties due to low-rate mortgages they secured before 2022, resulting in a dramatic reduction in buying and selling activity. Trump's proposed policies aimed at reducing mortgage rates and home prices, including potential mass deportations and tariff implementations, raise concerns about further inflation and difficulties in building more homes. Economists argue that these measures could worsen housing affordability instead of improving it.