Jeffrey Taylor appeared on “Bloomberg Daybreak: Asia” sharing his predictions for the U.S. housing market and his investment strategy for 2017. During the interview with Bloomberg’s Betty Liu and Yvonne Man, Jeff explains that he expects major drivers to fall within three buckets: the refinance market, the new administration’s deregulation policies, and Fannie Mae’s Day 1 Certainty Program.
Specifically, Jeff expects the refinance market to ramp down throughout 2017 due to a steady increase in interest rates. In fact, he expects that the refinance market will be virtually non-existent in the next twelve months. Next up, Jeff predicts that President-Elect Donald Trump’s focus on deregulation will alleviate regulatory pressure on banks and therefore aid them in performing more aggressively in the housing market. Lastly, Jeff anticipates positive results from Fannie Mae’s new Day 1 Certainty Program, which was announced in October. He feels that the program will help bring more certainty for mortgage loan providers when it comes to income, assets, and employment. Freddie Mac will also be rolling out similar programs in 2017.
Overall, Jeff expects 2017 to be the year of the Homebuilder. His investment recommendations include financial institutions, homebuilders, Lowes, Lennar, and Home Depot because the prolonged shortage of inventory will cause homebuilding to take off in 2017. Further, while rising interest rates will cause home affordability issues for some, Jeff anticipates that both multi-generational household purchasers and Millennial homebuyers will continue to drive home buying. He believes that increasing interest rates will entice banks to be more aggressive in lending and therefore balance out the situation.
To see the full interview and learn more about Jeff’s investment strategy, click to view the video below. To share your thoughts on Jeff’s predictions, reach out to him on LinkedIn.
Jeffrey Taylor on Bloomberg – His Predictions on 2017 Housing Drivers