By John Q. Hosedrinker Trump’s first broken promise will be his promise of 3% mortgage rates. It’s a promise that simply can’t be kept, no matter how much he wants to. Getting interest rates down to 3% would require the Federal Reserve to purchase trillions of dollars in debt, which is unlikely to happen. The Fed is an independent entity, and the government doesn’t have the power to tell them what to do. The only way the government could influence interest rates is by balancing the budget, raising taxes, and cutting spending, which is not something his supporters would be happy about.
There’s a good chance that his supporters will begin to scapegoat certain demographics, like migrants, and ramp up the culture war to distract from his broken promises. This will likely lead to a lot of buyer’s remorse in the next two years. It’s a pattern we’ve seen before. Remember his promise that Mexico would pay for the wall? It never happened, and his words mean nothing. It’s clear he’s not going to keep any of his promises.
The reality is that Trump doesn’t understand how mortgages work. He’s simply not equipped to address the complexities of the housing market. He’s made many promises about economic issues, but he’s never actually delivered on them. His supporters seem to be willing to overlook his broken promises, but they should remember his previous failures and not be fooled again.