Trump’s win will have two offsetting impacts on the housing market. Mortgage rates have already spiked since the election and will rise further. All else equal that will depress housing demand. Yet a fiscal stimulus also appears to be on the cards next year. That will boost GDP growth and disposable incomes, helping to counter any adverse impact of rising rates on home sales and house prices. We now expect a 5% rise in house prices in 2017, and a 2% gain in 2018.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services