The Election Effect On Mortgage Rates!

September 23, 2020


By Saeed Ghaffari

Can money get any cheaper than this?

Do you wonder if the presidential election is going to impact the mortgage rate? Let’s take a look.

Election years always bring a certain degree of uncertainty. The 2020 election is no exception Furthermore, in an election year with no incumbent, you can always expect even more uncertainty. With President Trump as the incumbent, you are guaranteed with the same.

The federal reserve is a government agency in charge of the national monetary policy.  Although its policies are supposed to be based on the economy and free of politics, politics will play a role in their decision makings, especially during an election year.

Below is what I discovered on the internet, a history of mortgage rates on election years. Take a look.


Election Cycle

Starting Rate

Ending Rate

Rate Effect

Nov-Dec 1972




Nov-Dec 1976




Nov-Dec 1980




Nov-Dec 1984




Nov-Dec 1988




Nov-Dec 1992




Nov-Dec 1996




Nov-Dec 2000




Nov-Dec 2004




Nov-Dec 2008




Nov-Dec 2012




Nov-Dec 2016




Nov-Dec 2020

 – –

 – –

– –

The historical changes on the mortgages in a presidential election look very insignificant. The highest change was in 2008 and it was for the lower rates.

Will 2020 be any different? It does not see that way for 2 main reasons other than history. One, the COVID-19 is bringing the economy down and will keep pressure on the rates preventing them from any major increase. Two, on the downward, rates are as lows they could be for a somewhat decent economy. Rates lower than 2s should be alarming to us all as a nation and I hope that it won’t be the case.  You should take the above an as an opinion from economists, but an observation from mortgage professionals bringing their read to you.

Courtesy of Reza Rahimzadeh, Loan America 

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