Dear Donald Trump,
Jerome Powell under Biden Administration has created a housing nightmare. If something is not done, investors will control a majority of the housing in America, turning single family homes into rentals.
As you know, interest rates do NOT control pricing, supply and demand controls pricing.
Since the Biden administration raised interest rates home prices are up to a record highest level ever, $419,000. (graph below.)
The average mortgage is now ~$2833/month before property taxes, HOA fees, insurance, and maintenance, bringing the total closer to $4000+ a month.
Go back fifty years; when rates go up, home prices continue up. If the Fed would lower rates to 4%, we would see home prices immediately come down, because supply and demand would go up.
I wrote the Biden Administration with a solution but it would appear they are pushing for the 2016 World Economic Forum agenda, "you'll own nothing and be happy about it."
Higher interest rates have never controlled inflation, its actually creating inflation in housing. And potentially more concerning altered ownership from home owners to investors.
This further exaggerates the housing supply problem. The Biden administration is manufacturing renters when we should be manufacturing affordable desirable homes.
Make Housing Affordable Again 4 Prong Solution:
1) Reduce interest rates for new home owners.
2) Remove ALL capital gains tax on home sales.
3) Create Homeowners Equity Exception Program -
100% future tax for home owners over 65 to sell their home and provide a "seller carry" mortgage.
4) Provide tax credits to rehab homes over 20 years old as long as they are sold to end user.
I would be happy to help you implement this program and good luck Thursday night.
Grant Cardone
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