The Election Effect On Mortgage Rates!

September 23, 2020

l

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

7.43%

7.44%

+0.10%

Nov-Dec 1976

 8.81%

8.79%

-0.02%

Nov-Dec 1980

14.21%

14.79%

+0.58%

Nov-Dec 1984

 13.64%

14.18%

-0.46%

Nov-Dec 1988

 10.27%

10.61%

 +0.34%

Nov-Dec 1992

 8.31%

 8.21%

 -0.10%

Nov-Dec 1996

 7.62%

 7.60%

 -0.02%

Nov-Dec 2000

 7.75%

 7.38%

 -0.37%

Nov-Dec 2004

 5.73%

 5.75%

 +0.02%

Nov-Dec 2008

 6.09%

 5.29%

 -0.80%

Nov-Dec 2012

 3.66%

 3.62%

 -0.04%

Nov-Dec 2016

 3.75%

 4.20%

+0.45%

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 

Should you have challenges with your qualification, don’t give up, connect with us. With over 30 years of experience and connection to numerous lenders with multitude of loan products, we’ll find you a solution. When there is a will, there is a way!

So Cal Real Estate Market Beat

You Deserve 100% Commission

Learn about our 100$ Commitment to 100%  Commission

Gold Sponsor of M&M

Order your NHD Report  on M&M

Call Us Today

714 469 5529

M&M NEWS

Related Articles

So Cal Real Estate Market Beat

The new listings surged back up from last week all across So Cal, with increases ranging from 4.94% in San Diego to as high as 7.7% in Riverside. We also added Ventura County to our report as it is one of the smallest counties in the So Cal region.   The closings...

What’s Going On With The Economy?

One way to gauge the state and the direction of the economy is by watching the mortgage lenders’ lending attitude.  When the economy takes a hit, lenders pull back, tighten their lending guidelines and take a more conservative approach to lending. When it is going...

Season 2 – Episode 1

Season 2, Episode 1 So Cal RE Market - Lakewood Featured Listings  100% Loan Programs   Saeed, Michelle and Erich presenting So Cal RE market & offering RE Tips, Featuring active listings in Lakewood with complete financial analysis and discussing 100%...