NORTH DAKOTA (KXNET) — High prices, expensive borrowing costs, and the lack of new homebuilding threaten the housing market as the new year approaches. But President-elect Donald Trump plans to revive it. Over the last month, mortgage rates have been increasing because of the renewed inflation risks that are linked to Trump's policy proposals lifting the benchmark bond yields. "Fore-sale inventory has loosened in some markets, and some potential buyers have been able to take advantage of increasing supply and lower FHA rates, which were down slightly in comparison to the conforming 30-year fixed rate," explained Joel Kan, the MBA's deputy chief economist. The rise in mortgage rates has been relentless and slashed the number of buyers who can afford homes. Since November 2019, the average home price has risen by over a third, putting pressure on the overall cost for first-time buyers. Unless action is taken, any higher move could temper the demand quickly. Black Friday shopping: Where to get the best deals "High mortgage rates continue to hinder recovery; however, with homebuilder confidence gradually increasing, more newly built homes will make their way to market in 2025," explained CoreLogic's Chief Economist, Selma Hepp. "The incoming administration could push for more housing to be built, perhaps even making federal lands available for residential construction and potentially limiting regulatory barriers that have added considerable costs to new construction." However, Senior U.S. Economist at Pantheon Macroeconomics, Oliver Allen argued, "The relatively high inventory of new homes for sale suggests that single-family construction probably will flatline at best over the coming months, and could easily start falling back again soon if mortgage rates remain around their current levels." Data shows that the number of active listings last month has risen to the highest level since December 2019, plus homes are taking longer to sell. Federal Reserve Chairman Jerome Powell said that the central is in "no hurry" to lower overall borrowing costs, even if rate cuts have been happening and are planned to continue. "Further interest rate cuts from the Federal Reserve through 2025 should result in lower interest rates for construction and development loans, helping to lead to a stabilization for apartment construction and expansion for single-family homebuilding," concluded Chief Economist for the National Association of Home Builders, Robert Dietz. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Today's Top Stories SIGN UP NOW