Monday, October 8, 2012 / by Kris Forsyth Lawson
With the presidential election now less than a month away, many questions are on the minds of the American people ready to cast their votes. As an orange county real estate professional, I am starting to see the local market taking a turn for the better. I wondered what impact this election could have on markets around the country depending on who wins.
“The next president, whoever it turns out to be, is going to have a couple of big housing issues to address,” Barry Zigas, director of housing policy at the Consumer Federation of America, told The Washington Post. For example, “What is the government’s role in housing finance, and will consumers have access to mortgages at affordable rates?”
Neither candidate so far has outlined a specific proposal for the housing market or mortgage lending. However, if re-elected, President Obama is expected to continue adding to his existing programs, such as in foreclosure relief, loan modifications, and by expanding refinancing options for home owners. He is also expected to continue to push for new housing finance rules under the Dodd-Frank Act, The Washington Post reports. If elected, Romney is expected to repeal Dodd-Frank. He also would likely replace it with regulations that would make it easier for the private sector to be a stronger player in the mortgage market, The Washington Post reports.
“The decision will have a huge influence on the housing market and the price of real estate, both for the lower end of the market that competes with affordable rental housing and the higher end that has lagged, partly because of lower limits for the size of mortgages that can be purchased and resold by Fannie and Freddie,” The Washington Post reports.
No one really knows what will happen and what regulations will or will not be repealed or enacted until the election is over and the president gets into office. I see the current signs of recovery as all positive and with the coupling of interest rates going even lower last week, we are hopeful for continued recovery and growth.
Source: “How the Presidential Election Affects the Real Estate Market,” The Washington Post (Aug. 30, 2012) For the full story: goo.gl/ns77r