The Last Election and the Possible Effects on Housing Nationwide

Since the Republicans have gained control of the House of Representatives, there will be policy changes which will affect many aspects of the housing and real estate markets. Now that we are four days out from the election, we will explore some of the ways which the media has presented the possibilities in their editorials by category of interest. Consider this article a snapshot in time, as these topics will be further developed as the power shift in Washington has been implemented and signs of some strategies by stakeholders can be seen.

Housing Subsidies

Housing subsidies will likely be affected by a proposed deficit commission according to the Wall Street Journal at blogs.wsj.com/developments/2010/11/02/how-election-results-could-shape-housing. Subsidies in the form of mortgage interest rate tax deductions may be at risk from some parties according to blogs.wsj.com/developments/2010/11/05/yun-cutting-tax-deduction-would-spark-recession .

Fannie Mae

Republicans plan to push legislation that will curtail and eventually close Fannie Mae according to the Wall Street Journal at: blogs.wsj.com/developments/2010/11/02/how-election-results-could-shape-housing. It may be that Obama will not stand in the way of this as it will be a fiscal sore point in the next presidential election. But for the moment they have plans for the overhaul according to blogs.wsj.com/washwire/2010/11/02/kanjorski-loss-a-blow-to-obamas-economic-policy

Freddie Mac

Republicans plan to push legislation that will curtail and eventually close Freddie Mac according to the Wall Street Journal at blogs.wsj.com/developments/2010/11/02/how-election-results-could-shape-housing. It is quite possible that Obama will not be able to get involved with this because of the potential effect on the next presidential election, but as of right now they still belive that these can be overhauled and are set to propose plans to do so according to blogs.wsj.com/washwire/2010/11/02/kanjorski-loss-a-blow-to-obamas-economic-policy

Mortgage Interest Rates

In the new scheme of Washington it is too early to tell what the effect on mortgage interest rates will be. I have not read much speculation in either the Wall Street Journal or Newsweek at newsweek.com/2010/11/02/how-the-election-will-affect-housing.html on this topic nor on the other seven hundred plus articles I saw available today, November 6.

Tax Deductions for Mortgage Interest

It is unclear at this time whether Republicans plan to push for reductions in tax breaks for mortgage interest paid.It is possible that the Tea Party will view it as as a tax increase and resist, il and eventually close Fannie Mae according to the Wall Street Journal at http://blogs.wsj.com/developments/2010/11/02/how-election-results-could-shape-housing but all viewpoints have not yet been heard. Many Republicans and Democrats alike fear that the effect of the repeal of this tax break would have a very strong negative effect on the economy. There has been anecdotal evidence, however, that this may be suggested more in the future according to the Wall Street Journal at blogs.wsj.com/developments/2010/11/05/yun-cutting-tax-deduction-would-spark-recession

Doubtless now we will see more control of the housing market by Republicans because of the current power shift. We will report what happens as we find out more only at HousesWanted.org.