The outlook for interest rates is pretty dismal if large deficits are the rule of the day in the Trump administration. China will have no appetite to purchase US bonds given tariff trade war. Who will pick up the slack unless there are higher interest rates? Since mortgage rates are tied to the 10 year Treasury, it doesn't look good for first time homebuyers. The other thing that is happening in our area (Bethesda, MD) is there is no moderately priced dwelling units being built. Even new appartment buildings are expensive and older buildings are being torn down for new construction. We have eight four story brick apartments that were built in the early 1950s that are slated for demolition. Their replacement will likely have rents 30% higher.
I can understand why there is so much outrage about this issue but I'm not sure the Federal government can do much about it. Our county is pushing hard for increasing housing density but those in single family dwellings don't want to see this in their neighborhood.
Bill,
The outlook for interest rates is pretty dismal if large deficits are the rule of the day in the Trump administration. China will have no appetite to purchase US bonds given tariff trade war. Who will pick up the slack unless there are higher interest rates? Since mortgage rates are tied to the 10 year Treasury, it doesn't look good for first time homebuyers. The other thing that is happening in our area (Bethesda, MD) is there is no moderately priced dwelling units being built. Even new appartment buildings are expensive and older buildings are being torn down for new construction. We have eight four story brick apartments that were built in the early 1950s that are slated for demolition. Their replacement will likely have rents 30% higher.
I can understand why there is so much outrage about this issue but I'm not sure the Federal government can do much about it. Our county is pushing hard for increasing housing density but those in single family dwellings don't want to see this in their neighborhood.