Donald Trump’s Impact on Housing Happened Immediately After Being Sworn in as President

*Disclaimer: I did not support Donald Trump for President, nor did I vote for him. I did not vote for Hilary Clinton either.

Just about an hour or so after Donald Trump was sworn in as President of the United States, Trump suspended cuts to FHA mortgage insurance premiums, creating a whirlwind of controversy.

Timeline Overview…

Here’s a quick rundown of the timeline so far:

  • Shortly before President Obama left office, his Administration passed an order that would have cut FHA insurance premiums by 0.25%
  • The rate cut was to take effect January 27, 2017 – after Trump would take office
  • On average, that rate cut would have saved new FHA borrowers approximately $40/month (around $480/yr)
  • For a lot of potential buyers who were just “missing the cut” of being approved for a home loan, this likely would have helped get them approved as their payments would be less as a result of the 0.25% rate cut
  • Trump is sworn in as President
  • About an hour later, Trump’s Administration halted the rate cut, citing that they wanted to review the rate cut before allowing it to go into effect
  • Critics of Donald Trump went on to accuse Trump of hurting the housing market, costing home buyers money, and even costing many home buyers the opportunity to buy a home

Is the Sky Falling?

Shortly after this was announced, my Facebook and Twitter timelines filled up with critical opinions of Trump’s decision to halt the rate cut – some of which were just flat-out falsehoods.

Somewhat understandably, I saw an enormous amount of people complaining that Trump had just ruined the housing market. But I also saw a lot of people reporting this, even news media and people in the housing industry as “Trump just raised rates on FHA mortgage insurance premiums.

He didn’t raise anything. He simply pressed the “pause” button on Obama’s rate-cut plan so his Administration could review it and decide whether or not to put it into effect later, change it up a little, or scrap it altogether.

Should Trump Have Done This?

The obvious and big question is, “Was this the right thing? Should Trump have halted this rate cut?”

And even as someone who doesn’t approve of most of what Trump does or says (especially in the manner in which they’re done or said), my personal opinion is that this is actually a good sign that he handled this this way.

Trump knew that if he allowed this plan for cutting mortgage insurance premiums by 0.25%, and then it backfired and caused a minor or major collapse in the housing market, HE would be blamed for it, even though it was the Obama Administration that passed it and came up with it.

So, Trump has stood his ground, doing what he believes is best, and if he wants to cut rates down the road, he can. At that point, yes, he’ll likely take all the credit. I mean, it is Trump. He’s not going to let anyone else get credit when it’s due, but still… I can’t fault him for sticking to what he thinks is right.

For a man who often acts with little patience, this was an example of caution and patience, and he did it within an hour or so of being President.

To me, that was a good start. And only time will tell if this will really negatively affect the housing market.


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Dan Hamilton is a top-producing full-time Realtor in the Columbus and Central Ohio area, well-known for his focus on client care and his use of video and technology in his real estate services. Dan works for Keller Williams Capital Partners Realty | Cbus Homes.