Is There a Correlation to Election Results and Mortgage Rates?
As we all await the outcome of our presidential election, those of us in the mortgage industry are debating what really matters…mortgage rates! Ok, maybe we care about the election results, as well. But we do get lots of questions – should we wait to refinance, should we buy now or later, should I lock in my rate?
Great questions! Before the election,the rates tend to be very stable…minor moves up or down. This year was no exception. So historically, what do the rates do AFTER the election? The short answer is, they move. But what direction is the hard part. Since 2000, the rates have moved more than half a percentage point soon after three of the last five presidential elections (down twice, up once).
So our advice is this…don’t use the election as a way to make mortgage decisions! There are reasons from experts right now as to why the rates should rise, and equally wise opinions from other experts as to why rates should fall. Just do what makes sense for your family and your situation. Rates are low. Take advantage. You won’t regret it.
