Mortgage rates ticked up slightly to 6.49% from 6.47% the week prior, according to new data from Freddie Mac. National Association of Home Builders CEO Jim Tobin joins Market Domination to discuss the state of the housing market and its outlook ahead of the 2024 presidential election.

Tobin notes that mortgage rates are overall trending lower, explaining that "any relief in the mortgage rates are going to be welcome news not only for the existing market — which remains locked — but also the new home market. We want to see more people and more activity, people willing to come off the sidelines even in a small uptick this month." As the Federal Reserve gears up for interest rate cuts, he believes that the building industry is "on the cusp of a really good five or six years." He explains that the current market "doesn't feel great certainly enough to bite the bullet and make one of the largest purchases that most Americans make in their lives," and an interest rate cut can help get buyers off the sidelines.

As the presidential election heats up, Tobin argues that "both administrations have the potential to help the housing market." He notes that former President Trump's first administration saw a lower regulatory environment and higher economic growth. Under a Harris administration, he expects a tougher regulatory environment but more of a housing focus, especially on the demand side.

He adds, "What we really need to do is try to get this administration at least in the last several months, here, to focus on how do we add more supply to the marketplace. That's really what's going to solve this. It's supply. There's plenty of demand out there. Let's build more homes."

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This post was written by Melanie Riehl