After Trump’s first week, homebuyers will pay more

New policy from the administration of President Donald Trump, as well as reaction to that, have made borrowing costs more expensive for homebuyers and labor costs more expensive for homebuilders.

We already know about the FHA fee and interests rate hike. But Trump’s war on immigrants will make trade labor even tighter and more expensive:

The price of a newly built home shot up more than 7 percent in December from a year earlier, as builders continue to battle with their No. 1 headwind: the cost and availability of labor.

That is unlikely to improve under the Trump administration, which clearly put immigration on the front burner in this first week. The vast majority of homebuilder labor is immigrant labor, and much of it was lost during the housing crash, as workers either went to different fields or left the country. While 78 percent of builders surveyed by the National Association of Home Builders said labor was their most significant problem last year, 82 percent said it would be worse this year.

Immigrants comprise close to 41 percent of the construction workforce in California and close to 40 percent in Texas, according to the homebuilders group. While the share of Mexican workers has declined slightly since 2004, there was an increase in the share of immigrants from the rest of Americas. Together, they account for almost 84 percent of the immigrant construction labor force.

What percentage of immigrant construction workers are illegal immigrants? How many will be deported?

If a very small percentage is getting deported, its impact on labor rate will be negligible.

Actually labor rate could go down for illegal workers since emloyers will not hire illegal workers due to law enforcement risks.

There is no change for FHA, it’ll be the same as last year. No change at all.

Interest rate goes up due to Wall Street activities, President does not control the interest rate.

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Well, I was doing my part from Day 1 of coming here. By touting my mortgage broker, Tracie, I was essentially saying, LOCK IN, boys and girls… If you didn’t do it, oh well…

Mr. 2.5% Fixed

Look who’s rubbing it in. :imp:

I was going to use that pic of my 2.5% loan as my picture, but the Magic 8 Ball is too sweet to let go…

When was 2.5 possible?

15 year fixed probably.

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Correct, and I was clear about that (with pic). A few years back…i do so many refi’s i can’t remember off the top of my head which property which refi…

When there’s a good rate, can you refinance multiple properties at the same time? One by one, you’ll for sure miss the good rate for most of your loans

I have the best mortgage broker around. She only calls me when it really makes sense to do it on any of my loans. Otherwise, no call. That is the perfect business relationship.

Best mortgage broker around? Best? Bigly? Yuge? Slow down Trump…:laughing: