Jul 30, 2024

Industry News: Project 2025 Housing Position, Mortgage Rate Drops, and Housing Market Since 2020

In this episode, Ryan Glick and Charles Reeder dive into the latest industry news, focusing on the Project 2025 housing proposal, recent mortgage rate drops, and the housing market's evolution since 2020.

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Episode Overview

In this industry news episode, we explore three headlines affecting the real estate industry.

First, we dive into the Project 2025 proposal, a conservative blueprint gaining attention in political and business circles. This 900-page document outlines a firm stance on maintaining single-family zoning and suggests changes to housing vouchers and federal transit subsidies. We discuss how these policies might influence the housing market, especially the multifamily sector, and the broader implications for affordable housing.

Next, we analyze the recent drop in the average 30-year fixed mortgage rate to its lowest level since March 2024. Despite this decline, mortgage applications have not surged as expected. We consider why homebuyers might be hesitant and what this means for future demand, especially if the Federal Reserve cuts rates further.

Finally, we review the housing market’s trends since 2020, using data from various sources to highlight affordability challenges and shifting dynamics. We discuss the significant increase in home prices, the impact of interest rate changes, and the affordability pressures many potential buyers face.