President-elect Donald Trump is making waves in the real estate market as his election affects not only the stock markets, which reached record highs late last week, but also caused mortgage rates to shoot up.
According to data provided by Zillow, the 30-year fixed mortgage interest rate spiked in the aftermath of Trump’s election, rising from 3.38% on Tuesday to 3.8% on Monday morning.
So what does that mean for the real estate market in New York? At first, many buyers began canceling their views and delaying contracts, according to an article by Ronda Kaysen for The New York Times.
As it turns out, it didn’t take long for this uneasiness to subside.
From the article:
But even a few days can make a difference. By the end of the week, potential buyers were rescheduling appointments they had canceled on Wednesday, Mr. Kliegerman [president of Halstead Property Development Marketing] said. Others who had spent the summer cautiously eyeing apartments were finally signing contracts, relieved that the election was over. “The phone has been ringing a lot this week,” Mr. Debbas [partner at the boutique law firm Romer Debbas] said. “People are realizing that the world’s not ending.”
Some say that Trump’s victory will be good for New Yorkers due to his proposed tax breaks aimed toward the wealthiest Americans that could reinvigorate the luxury housing market. On the other hand, affordable housing advocates worry that the most vulnerable Americans could suffer under future policies.
But this is only taking into account Trump’s economic policy. If he begins the deportation of millions of immigrants, everything could change.