Will Mortgage Rates Feel the Election Pain?

Blog posted On November 08, 2016

If you have not already cast your vote, today’s the day!  Americans are voting for president in today’s general election.  Many consumers have been wary about making financial decisions because of the upcoming change in regime, so let’s take a look.  How does the election season influence mortgage rates?

Statistically, the economy does not fluctuate drastically based on which political party has control of the executive office.  In fact, the market is not partisan at all.  Historically, presidential politics have a low to moderate impact on stock valuation.  Investments are subject to broader economic cycles that take years of policy implementation to take hold.  Investors survive elections by staying put and avoiding politicizing their portfolios.

According to a study by Bloomberg and Oppenheimer tracking a hypothetical $10,000 investment in the Dow between 1897 and 2014, the money that stayed invested would have grown to a $4 Million value while money that was moved around would hardly equate to $500,000.  Riding the rollercoaster of change is a safer bet than making knee jerk moves based on fluctuation.

The housing market reflects the national economy, and like the national economy the housing market will not change drastically overnight.  The real economy draws influence from a myriad of factors besides the White House’s new occupant. 

Sources: Fortune, HousingWire