Solving the Post-Close Challenge with Intelligent Automation

Join our upcoming webinar as SoftWorks AI CEO and Avanze CEO explore the advances in tech that allow for greater levels of automation and cost reduction, especially in support of post-close and pre-fund review.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

The 100-years-war over real estate commissions

HousingWire plunges down the rabbit hole of residential real estate commissions, uncovering the past, present and future of this wholly unique part of the economy.

How borrower education can make housing more attainable

The current housing market is making it difficult for prospective buyers to afford a home. Housing professionals need to find ways to better meet buyer needs.


Divided Congress creates stock rally after midterms

But experts keep economic expectations steady

The Dow Jones jumped following the news of a divided Congress after the midterm elections.

As the markets opened Wednesday morning after the elections, stock markets showed gains.

Early Tuesday night, analysts called the race – giving the House of Representatives to the Democrats and the Senate to Republicans.

While many key races were still too close to call as of Wednesday morning, it appeared that the Democrats would gain 30 seats in the House (they needed 23 to take the majority) and the Republicans would gain three seats in the Senate.

And one expert explained this divided Congress is just what investors want.

“U.S. stock index futures are pointing to a strong opening on Wall Street after the baseline consensus forecast for U.S. midterm elections proved correct as Democrats won control of the House, while the GOP hung on to the Senate,” a report from Seeking Alpha stated. “History has shown that mixed party control is generally the best combination for equity markets, while the highest-growth stocks can keep putting up terrific numbers even during an economic slowdown. Democrat-friendly sectors, like the biotech cohort which runs counter to Big Pharma, could also get a boost.”

But in the long term, it is unclear what this split will mean as Congress is likely to remain gridlocked on potential legislation.

Many experts have already been projecting a recession in 2020 or even as early as 2019. Now, this split could hinder Congress from taking action that could help strengthen the economy against an upcoming recession.

“The Democrats were widely expected to win control of the House in yesterday’s midterm elections and the results set the stage for two years of legislative gridlock,” Capital Economics Economist Andrew Hunter wrote in a report. “President Donald Trump and the Democrats could work together to boost infrastructure spending, but there is probably more chance of an extended government shutdown.”

But so far, experts have insisted that their economic outlook remains unchanged by the midterm elections.

“Overall, the midterms are unlikely to have a significant bearing on the economy,” Hunter said. “But they probably raise the risk that political uncertainty once again becomes the dominant theme over the next couple of years.”

Most Popular Articles

Biden’s $15K first-time homebuyer tax credit now a bill

President Joe Biden called for a $15,000 tax credit for first-time homebuyers, and Congress has answered his call with a bill.

Apr 26, 2021 By

Latest Articles

What a dismal jobs report means for the housing market

April’s U.S. jobs report on Friday was dismal at just 266,000 new jobs, but economists say they’re not worried about the housing or mortgage market. HW+ Premium Content

May 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please