Grant Cardone

Between soaring home prices and high mortgage rates, buying a home has become unaffordable for many Americans.

The outcome of the upcoming presidential election could potentially affect housing affordability and Grant Cardone a private equity fund manager and real estate investor believes that a victory for Donald Trump could be good news for the real estate market.

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Heres why Cardone believes a Trump win could make buying a home more affordable:

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Although the president doesnt directly control interest rates, Cardone believes Trump would do everything in his power to get them lowered during his potential presidency.

Trump will hammer the Fed for lower rates, Cardone told GOBankingRates. If he doesnt get his way, he will try to collapse the Fed and make it part of his executive office. I think it is not a bad idea that the president would control the interest rates of a country, because we cant be competitive right now. Japan has a mortgage rate of 2.5%. Ours is 7.5%.

If interest rates were reduced, mortgage rates would drop as well.

Trump would put pressure on the Fed to reduce rates and get them competitive again so people could actually afford a mortgage, which would be under 4% or 4.5% for a mortgage to be competitive with a rent, Cardone said.

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Not everyone agrees that mortgage rates would be lower under Trump. Melissa Cohn, the regional vice president at William Raveis Mortgage and a 40-year veteran of the mortgage industry, believes that a Trump win would be more likely to result in inflation, so interest rates would not be reduced.

Trump has all of his tariffs and his isolationist policies that he would want to put into place, which would be inflationary in this country, she said.

Editors note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

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