In real estate news today: Trump, Musk, and the housing market’s future

The recent announcement of Donald Trump hiring Elon Musk to co-lead a government efficiency initiative has sparked widespread discussion about its potential impact on industries across the board, including real estate. Lawrence Yun, Chief Economist of the National Association of Realtors, has weighed in on Musk’s focus on reducing government spending and its possible influence on mortgage rates.

Will Musk’s efficiency measures lower mortgage rates?

According to Yun, reducing government spending could lower the federal deficit, potentially impacting mortgage rates. However, Shallis cautions that the reality may be more complex:

“While reducing government spending is a promising initiative, economic stimulation often leads to inflation, which in turn drives interest rates higher. The Federal Reserve will have to strike a delicate balance to manage these dynamics effectively.”

Borrower misconceptions about fed rate cuts

Shallis also addresses a common misconception among borrowers:

“Over the past few weeks, I’ve received multiple calls from clients asking, ‘Why didn’t mortgage rates drop when the Fed reduced rates?’ The truth is that mortgage rates respond to market forecasts and long-term investor sentiment, not just Fed actions. When unexpected rate cuts occur, they can create uncertainty, pushing rates higher as investors hedge against the unknown.”

Call to action for buyers: Lock in your price now

For buyers, Shallis emphasizes the importance of acting now:

“By locking in your price today, you can protect yourself from overpaying for the same property in the future as rates fluctuate. With inventory critically low—one home for every three to four buyers—demand will only increase when rates eventually drop. The time to act is now.”

Real estate as an inefficient market: A hidden opportunity

Shallis explains that real estate’s slower-moving nature compared to the stock market creates opportunities:

“It takes 60 to 90 days for economic changes to impact real estate sales. From the time a house is listed to when the sales price is disclosed, months can pass. That’s why experienced professionals focus on pending sales, which provide a forward-looking indicator of market trends.”

A Jersey Shore lesson in market awareness

“As a kid at the Jersey Shore, I learned a valuable lesson about spotting what’s coming. My mom and I would see storm clouds forming on the horizon, pack up, and head to a restaurant before the rain hit. Meanwhile, others stayed on the beach until the rain was pouring down on them.

The same principle applies in real estate: experienced professionals spot market changes before they’re obvious, allowing clients to make informed decisions ahead of the crowd.”

For realtors: Educate and empower your clients

Shallis encourages realtors to take an active role in guiding their clients:

“Realtors should help buyers understand the advantages of acting now. The combination of limited inventory, rate fluctuations, and market inefficiencies creates unique opportunities. By educating clients and working with a team of skilled professionals, you can build trust and ensure successful transactions.”

Qualify your real estate team

“For buyers and borrowers, working with the right team is critical. In medicine, you wouldn’t let a general practitioner operate on your heart. In real estate, why trust one of the largest investments of your life to an average agent? Ask your realtor about their experience, market knowledge, and ability to work collaboratively with mortgage professionals and advisors.”

Looking ahead: Musk, policy, and housing supply

While addressing the federal deficit is important, Shallis believes the real focus should be on increasing housing supply:

“Streamlining construction timelines, which currently average 24 to 36 months, would have a far greater impact on the market. Faster inventory growth would reduce competition, create more affordable housing, and stabilize prices.”

Final thought: The time to act is now

“The good news is that real estate market inefficiencies create incredible opportunities for those who act strategically. With inventory tight, rates fluctuating, and demand poised to surge, buyers who lock in now and work with skilled professionals will have the best outcomes.”

Sean Shallis is a best-selling author, top-producing Loan Officer, and founder of the Realty Coach App.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

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