After a hotly contested presidential race, Donald Trump won another four years in the White House for his second term after securing enough Electoral College votes from key swing states.
With his second term comes questions about how another Trump administration would impact the US housing market, which is currently struggling with high home prices and elevated mortgage rates.
Here's what experts believe could happen in the next four years.
Isaac Toledano
Toledano, president and founder of BH Group, told Fox News Digital that he believes Trump would likely lead to lower interest rates, which could also push mortgage rates to drop.
"I think that rates will go down fast. I think the Fed will be more aggressive. I think that President Trump's agenda is clear to everybody," he said, adding that he believes the Federal Reserve will again cut its benchmark rates at their Thursday meeting.
READ ALSO: Renter Households Grew Three Times Faster Than Homeowners Amid Rising Homebuying Costs
Ralph McLaughlin
One of Trump's promises on the campaign trail was to carry out "the largest deportation operation" in the country's history. He claimed illegal immigrants in the country were competing with American citizens for housing, which is bringing the prices up.
In reality, home prices following the COVID-19 pandemic, even before the levels of illegal immigrants in the country jumped, according to the Joint Center for Housing Studies (JCHS) of Harvard University.
Should Trump push through with his plans of mass deportation, it could impact the country's labor supply and cause a shortage in homebuilders, Realtor.com senior economist McLaughlin said.
Jacob Channel
Channel, a senior economist at LendingTree, also agreed with McLaughlin's warning about mass deportations.
In addition, he also commented on another Trump proposal, which aims to cut homebuilding regulations and permit requirements to bring down the costs of building a house. While these could reduce costs, Channel noted that they are unlikely to cut home prices by half.
As of September 2024, the median home sale price of a typical single-family property was $427,989, per data from Redfin. The contract rate for the 30-year mortgage term also settled at 6.72% in the week ending Oct. 31.
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