Mortgage Matters

mortgage-mattersThe question on many people’s minds during an election cycle besides which presidential candidate is going to take the reins of our great nation is how will mortgage rates be affected during a presidential election year. Many people are unsure if they should refinance or buy a home during an election year or wait until the dust has settled. But what history has shown over the last four decades, is that rates do not change much during this time, and although this year may have some bumpy campaigning, historically rates have shown that they will not be as bumpy. 

So what has history shown us will happen with mortgage rates? 

• 2012 – November 6, 2012 (Barack Obama) 3.40%—down to 3.38%)

• 2008 – November 4, 2008 (Barack Obama) 6.09% – down to 5.29%

• 2004 – November 2, 2004 (George W. Bush) 5.73% – up to 5.75%

• 2000 – November 7, 2000 (George W. Bush) 7.75% – down to 7.38%

• 1996 – November 5, 1996 (Clinton) 7.62% – down to 7.60%

• 1992 – November 3, 1992 (Clinton) 8.31% – down to 8.21%

• 1988 – November 8, 1988 (George H.W. Bush) 10.27% – up to 10.61%

• 1984 – November 6, 1984 (Reagan) 13.64% – down to 13.18%

• 1980 – November 4, 1980 (Reagan) 14.21% – up to 14.79%

• 1976 – November 2, 1976 (Carter) 8.81% – down to 8.79%

• 1972 – November 7, 1972 (Nixon) 7.43% – up to 7.44%

 

Although it is difficult to predict if mortgage rates will go up or down, history has shown that an election cycle bears little influence on rates.

So what does influence rates?

real-estateThere are many factors that influence rates, such as the domestic financial market and the overall health of the global economy. For example, after the Brexit vote, mortgage rates dropped even lower, and hit all time lows in July, despite earlier predictions that the Federal Reserve would raise rates.

This presidential election will surely bring a showdown among the republican and democrat nominees, but don’t let that impact your decision on whether to refinance or buy a home. Although there is much uncertainty in our economy at this time, it is still a great time for people to think about refinancing or buying a home.

greg-ritchieGregory Ritchie, Broker/Owner
Citizens Financial
406 Main St. Suite E
Vacaville, CA 95688
Office: 707-800-6047 • Direct: 310-405-4744
gritchie@citizensfinancial.co

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