America goes to vote on Tuesday, November 6, in a mid-term non-presidential election whose outcome is likely to impact the housing market in more ways than one—much of which will depend on who votes during this election, especially since early voting is already open.
As DS News reported, many will be looking to the fate of the GSEs following the midterm elections. According to recent reports, the idea of scaling back Fannie Mae and Freddie Mac without legislative approval has gained traction, making the results of this mid-term election even more important in determining their fate moving forward.
Chief among the changes that the housing market is likely to see is the possibility of the conservatorship of the GSEs.
“It’s possible that the conservatorship will be unwound over the next year or two regardless of the midterm election outcomes, but if the Democrats take control of the House, they’ll look to build language into the agreement that provides funds for affordable housing, and offers expanded credit provisions for underserved borrowers–both of which Democrats included in the last bipartisan attempt to end the conservatorship a few years ago,” Rick Sharga, EVP, Carrington Holdings told DS News.
The stewardship of the Bureau of Consumer Financial Protection (BCFP) is another area that is likely to be impacted by the election results. Also at stake this election season are affordable housing legislations, with the success of bills such as the Affordable Housing Credit Improvement Act, the New Markets Tax Credit (NMTC) Extension Act, the Historic Tax Credit (HTC) Enhancement Act, and others depending on who wins the House and Senate seats.
Here’s what else is happening in the week ahead:
- CoreLogic Home Price Insights Report, Tuesday, 9 a.m. EST
- MBA Mortgage Apps, Wednesday, 7 a.m. EST
- Ellie Mae Millennial Tracker, Wednesday, 10 a.m. EST
- Freddie Mac Primary Mortgage Market Index, Thursday, 8 a.m. EST
- NAHB Housing Opportunity Index, Thursday, 10 a.m. EST