Miami Mortgage News

64- Housing market could get a bump from Trump

April 4th, 2017 5:39 PM by Nour Ailan

Housing market could get a bump from Trump

Donald Trump was most famous for being a real estate developer before he became a reality TV star and then wound up Leader of the Free World. So it may not be a huge shock to find out that home builders have been on fire since he was inaugurated.
Pulte (PHM), DR Horton (DHI) and Lennar are all up more than 10% in the past two months and are among the top 25 stocks in the S&P 500 since President Trump took office.
Even though mortgage rates could climb if the economy continues to pick up steam (with or without a Trump stimulus package this year) and as the Federal Reserve hikes short-term interest rates, builders are confident more people will be buying homes.
Stuart Miller, the CEO of Lennar (LEN), said in the company's earnings release this week that there was an "improving macroeconomic environment following last year's election."
He pointed to "renewed optimism, wage and job growth, and consumer confidence." Miller added that "as a result, our homebuilding operations have gone from slow and steady to a faster than expected sales pace throughout our first quarter."
The hope is that the economy, which already had started to pick up some steam in the past year before Trump's victory, will continue to gain momentum.
If that happens, prospective homebuyers may not be scared off by higher rates because their wages are also going up.

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