The Election’s Impact on Mortgage Rates

All expectations from the Election are already priced into Mortgage Rates. The market is using all data and projections it can to predict the impact of the election beforehand. The election can still be a pivotal day for Mortgage Rates.

Over the last two elections we’ve seen all-time low 📉 interest rates along with recent high’s 📈 in Mortgage Rates.  

Rates have some unpredictability to them, so I think the bigger picture is focusing on house values. During the 2016-2020 presidency, house values went up 10% on average across the country. During the 2020-2024 presidency, house values went up 25% on average across the country.  

The moral of the story is buying a house 🏠 works out as a wise financial investment over time, no matter the results of elections. 

Since 1955 there have been 17 presidential elections and only 7 times did Mortgage Rates go down 📉 during election years.  

In 2016 Mortgage Rates went down prior to the election. However this was in large part due to: 

• Chinese stock market collapse 
• United Kingdom left the European Union (BREXIT)

When Trump won in 2016, Mortgage Rates then jumped nearly 0.50% very quickly.. on the expectation of more spending. Rates then ended up moving lower in the following months.

In 2020 Mortgage Rates dropped to all-time lows, but this was due to COVID’s impact on the economy, not the presidential election. 

The main takeaway is that Mortgage Rates don’t have a preference on presidential candidates.. they do care about the economy and the candidates potential impact on the economy. 

Remember, low inflation + low mortgage rates, so any candidate that favors less government spending and lower inflation will be a win for Mortgage Rates! 

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Videos below 📽️ – Talking about “Creative Loan Options” at the REVitalize Event in Miami, FL 

Tap into MORE of your Home’s Equity! 

Cash-Out Refinances generally are always capped at 80% of the value of your home.

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Example:

• Let’s say you owe $200k on your home and it’s worth $400k
• The traditional 80% Loan-to-Value limits would allow the new Cash-Out loan to go up to ($400k x 80%) = $360k
  • So you used to be able to take out $360k – $200k balance = $160k cash out, minus closing costs
• Now you can go up ($400k x 90%) = $380k
  • This allows you to take out $380k – $200k balance = $180k cash out, minus closing costs

What could you do with an extra 10% Cash-Out 💸 of your home?!

Many people are using these funds to:

• Pay off high-interest debts (example: credit cards 💳)
• Renovations and home upgrades
• Down payment on another property
• Family vacation 🏖️
• … and much more!

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What has been Going on with Mortgage Rates?! 📈📉

October 🎃 was a bit of a bumpy ride 🎢 for Mortgage Rates. They ended up increasing nearly 1% 📈

This was in large part due to the Fed’s aggressive 0.50% rate cut ✂️  in September. 

Instead of the typical 0.25% rate cut, the Fed felt the need to come stronger 💪 out of the gates and cut more significantly. 

This seems to have created a mini-fueling 🔥 of the economy, since things got more affordable that much quicker and some Jobs reports jolted back higher. 

Now, I think this is a blip on the radar and that inflation will continue to get under control, which will help Mortgage Rates move lower 📉, but we may see the Fed be more cautious at upcoming meetings when it comes to Rate cuts, because they don’t want to further overdo it. 

Slow and steady 🐢 wins the race when it comes to lowering inflation and allowing Mortgage Rates to follow.