Mortgage rates hit record lows in 2020, what will happen now that the election is over? If you are thinking about buying a home or refinance in the next few months, you may have been looking at interest rates. So what happens now?
In 2016, average mortgage rates went from 3.47% in October to 4.2% in December. In 2012, rates stayed about the same. In 2008, interest rates dropped from 6.2% to 5.29% in December. So what happens this year?
No one – not the President, Congress or the Federal Reserve – set mortgage rates. Rates move with the changes in the financial markets. And not just our financial markets but the markets worldwide can affect our mortgage rates.
After the 2020 election, we may see different things happening due to Covid-19. If the new president decides to issue shutdowns to curb the disease’s spread, rates could fall on fears of economic fallout. With a potential Biden win, mortgage rates could climb in hopes of new change. In reality the Federal Reserve is trying to keep rates low so the economy keeps moving. No one expects the Federal Reserve to raise rates any time soon.
Predicting rates for the rest of 2020 and going into 2021 involves a lot of “if’s” and “maybe’s”. No one truly knows for sure until the year is over! History has shown that presidential elections can impact rates positively, negatively or not at all! So what should you do if you are thinking about buying or refinancing in the next few months? The best advice is to watch the market and stay in contact with your loan officer! I’ve told many clients that if you are comfortable with the interest rate, lock in and be happy with the rates you have chosen. Rates change on a daily basis and so the advice I can give you is to stay in contact with your loan officer until you have locked in your rate!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
