The U.S. presidency often brings economic and policy changes that directly impact homeowners. With President Donald Trump returning to office, it’s important for homeowners to stay informed and prepared for any potential financial implications.
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Whether you’re managing a current mortgage, planning renovations, or considering selling your home, some key money moves can ensure your financial stability and optimize your home’s value.
Over the past few years, supply chain disruptions have caused construction and renovation costs to spike. From lumber to appliances, pricing and availability have been wildly unpredictable.
With Trump’s potential focus on deregulation and strengthening domestic manufacturing, there’s speculation that supply issues may start to stabilize over time.
“Trump has said that he wants to prioritize new construction, which if that does end up happening, could provide some reprieve by improving the supply/demand ratio,” said Adam Hamilton, CEO of REI Hub. “But, it is difficult to say exactly what will happen until Trump is in office and begins implementing any changes. It could be wise to hold off on making any major moves in real estate until it becomes more clear exactly what will change.”
Cindy Stumpo, CEO of C. Stumpo Development and a seasoned real estate developer with over years of experience, said the recent wildfire disaster in California will also play a huge role in home builder supply chain issues and present more challenges for newly re-elected President Trump to help improve the housing market.
“In my industry, we’ve been dealing with the aftermath of COVID for the past four years,” Stumpo explained. “Prices went up on materials and supplies due to shortages, and we were finally seeing the cost of materials level out. But with the fires that recently happened on the West Coast, a lot of resources and building materials will have to go toward rebuilding California. This could very well create a supply and demand issue once again.”
If you’ve been considering major home renovations or moving to a new build, you might want to hold off just a little longer to see if material costs decrease or become more predictable. This approach could save thousands on your next home purchase.
Economic policies can shift quickly under any administration, and having a robust emergency fund specifically for housing expenses can provide peace of mind amidst any economic uncertainty.
What should this fund cover? Let’s say three to six months of your base expenses is a great start. You should also consider the cost of any emergency repairs, or increases in insurance premiums or property taxes.
Having this cushion ensures you won’t need to rely on borrowing or credit cards for unexpected expenses, even if the economy takes a turn. Evaluate your current monthly expenses and see where you can shave off costs temporarily to direct funds toward this emergency reserve.
Mortgage interest rates are no longer at record lows and haven’t been for a while now. As a result, many homeowners are holding off on refinancing or even searching for a new home for the time being if the numbers don’t make sense.
“My partner and I are holding off on doing any sort of refinancing of our properties currently, because based on current speculation, it looks like interest rates are not going to be dropping and potentially rising over the next 12 months,” said Holden Andrews, real estate investor and founder of Helpful Home Group. “We have houses in the 5.25 to 6% range, and if we were to do a cash out refinance, the increased interest rate wouldn’t pencil for us.”
Stumpo also doesn’t think that mortgage interest rates will go down anytime soon and that homeowners should wait to refinance.
“The bond market heavily impacts mortgage interest rates, so something with the bond market has to change to bring those rates down,” she said. “On the other hand, the [Federal Reserve], or Fed] rate only controls your borrowing power, so if the Fed rate decreases, it means you can borrow money at a cheaper rate if you’re looking to buy or build something new.
“But then you probably won’t see any relief when it comes to the actual mortgage rate on your home, but I’m hopeful that things can start improving more by 2026.”
Donald Trump’s presidency may influence how the housing market performs in your area. Be it policy changes that affect mortgage rates or efforts to boost the overall economy, these factors can directly or indirectly change property values.
If you’re a homeowner, now is an excellent time to reassess your home’s worth. A property evaluation can give you clarity on where you stand financially and help you make informed decisions about refinancing, selling, or staying put.
Energy policy is often a major talking point in administrations, and Trump’s policies may differ significantly from prior initiatives related to green energy. That said, regardless of the administration, investing in energy efficiency is a win-win for homeowners.
Upgrades like solar panels, smart thermostats or better insulation can lower your monthly utility bills — while increasing your home’s overall value. Homeowners who make energy-efficient changes may also qualify for tax credits or incentives.
With Trump’s return to the presidency, it’s an excellent time for homeowners to take stock of their finances, reassess their property and prepare for potential policy shifts. By waiting for supply chain improvements and building an emergency fund, as well, you can position yourself for more long-term stability.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
