January 24, 2017
We now have a new President to go along with a new Congress. During the past year or so, we have endured what can only be described as an excruciatingly long election season mired in controversy and then even more controversy leading up to this time. With all this has come an endless amount of speculation as to the changes that will come about and what the effects will be on our economy.
Some of the questions center around trade agreements, regulations, foreign policy, health care and more. It has always been our policy to avoid political discussions and also not to get into speculation. This will not change. We don’t know what exactly will take place and certainly don’t know what effects these changes will have on the economy. Thus, we will discuss changes in policies which can affect the economy, real estate and jobs — but we have no better crystal ball than we have previously carried.
We do want to wish President Trump well, along with his administration and Congress. They certainly have a daunting task head of them, as does every new government. As an example, President Obama came in facing the deepest recession we had seen since the Great Depression — quite a challenge. Though there is a new direction, the economy and life will go on. For example, the Federal Reserve Board’s Open Market Committee meets next week for the first time since they raised rates in December. Most are not expecting another increase so quickly, and the change in administrations should not alter those expectations.
Note: Speaking of changes, we do know that upon the administration transition, the previously announced reduction in FHA Mortgage Insurance Premiums was suspended indefinitely by HUD. These changes were to take place January 27. HUD did not give a date by which they would revisit the policy.
Source: Origination Pro