If the new Administration makes good on plans to lower taxes, reduce regulatory burdens and accelerate job growth, then a more robust economy is inevitable. Lower my taxes and I will have more money to spend and save. Eliminate some of the regulations that make mortgage getting so cumbersome and I can help more people buy homes. Accelerate job growth and more people can spend, save and buy homes. JFK said “a rising tide lifts all boats” and all signs point to a rising tide.

Interest rates have been engineered below market equilibrium forces for over a decade. US economic growth has been suppressed and anemic for so long that we have organically accepted mediocrity as a new norm. The financial markets immediately responded to promised tax and regulatory reforms anticipating accelerated economic growth. Economic growth breeds inflation and rising interest rates is simply part of those mechanics.

The math is simple; more people with jobs and a more robust economy means more people will be buying and selling homes in a higher interest rate environment. So my forecast is that 2017 will deliver a more robust economy, higher interest rates and a more active housing market. You can hold me to it.