Here is a shocker. The president of the United States does not set interest rates. The Federal Reserve determines what interest rates will be and the president does not control the Federal Reserve, it is independant.
Residential real estate is heavily regulated at the local level. The price of a house is what a willing seller will accept for it and what a willing buyer will pay.
The economic forces of supply and demand have a huge impact on prices.
When the government has programs that reduce the cost of buying a house the demand for housing goes up and so do the prices.
I can think of a few things that would make houses more affordable.
- Lower interest rates on home mortgages.
- More houses – we need to build more housing.
- Less expensive regulations so that builders can build more affordable housing.
If the demand for housing were to go down that would also drive prices down.
Housing is complex. There are no simple solutions to our lack of affordable housing.
