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http://www.doctorhousingbubble.com/trump-administration-housing-real-estate-impact-mean-for-housing/I have a couple of quibbles about that article. Remembering that correlation does not automatically translate to causality, the article seems to imply that Trump’s election victory was partly to blame for the bond market tanking. The bond market has been in trouble for a long time, and I think a strong case could have been made that had there been no election at all, the bond market might well have tanked anyway. What the bond market matters is that when bond investors want higher yields to compensate for what they perceive as higher risk, that can force the Federal Reserve to either raise interest rates a bit (so the government’s bonds will sell), or digitally “print” the dollars to “buy” those bonds themselves. Raising interest rates always makes housing money more expensive, with predictable effects on housing valuation.
My second quibble is that there was no discussion about Trump’s effect, if any, on the “disparate impact” legal war being waged by HUD against landlords. The pressure for those lawsuits has to be coming from Obama, and after January 20th, that pressure just might be going away.
–Dee
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