Did you know that election years correlate to movement with mortgage rates? Rates have climbed up to around 7.5% since October 2022, when activity was sluggish. Today, inventory is very tight and properties are flying off the shelves, even with higher rates. When tracking all of these changes in activity and rates throughout the years, it’s important to look at how elections affect things, especially since we have one coming up. Here are the rates since 1995, looking at the year before and the year of an election:
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1995: 7.93%
1996: 7.81%
2003: 5.84%
2004: 5.83%
2007: 6.34%
2008: 6.14%
2011: 4.45%
2012: 3.66%
2015: 3.85%
2016: 3.65%
2019: 3.94%
2020: 3.20%
In 2023, the average rate is 6.44%, so we’ll see where things go next year for the election. Rates have been going down during election years in all of these examples, so we’ll see if next year continues this predictability. In the volatile times of election years, it helps to have peace of mind for the economy when it comes to mortgage rates.
This information will help people who are on the fence about their real estate plans for the next year or so. Rates might get a little better and inventory might open a bit, which would both be great for buyers. The market is still a long way from a balanced market, but any bit of inventory helps the market become more stabilized.
If you have any questions about the fluctuation of rates or anything else related to real estate, I would love to answer them for you. Call or email me anytime and I’ll help you reach your goals.
