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How Are Mortgage Interest Rates Affected By The Presidential Election?

By Ann White

The most recent presidential election has brought many large changes to the United States housing market. For those looking to buy a new home or for those struggling with their current mortgage payments it is very important to understand how the mortgage interest rates are affected by the presidential election.

Historically low interest rates

In a down housing market it is important for the government to step in and try to stimulate home purchases. One great way to do this is to increase buying power for those looking to purchase a home. Since the presidential election rates have dropped to a historically low point. This increases buying power, becuase purchasers can afford more expensive homes, or they can just afford the same home more easily than if rates were higher.

It is easier to refinance

Since the new president has come to office, it has been made easier for current home owners with fixed mortgages to refinance their homes. This affects the mortgage interest rates because homeowners that could not refinance to these historically low rates now can. Even if they have no equity or even bad credit, the new president has made it easier to enjoy having a lower interest rate on a mortgage.

Obama housing plan helps those with ARMs

One major affect of the presidential election on mortgage interest rates is the help for those in ARMs. It is easy for a person with an ARM to fall behind on his mortgage payment when the rate adjusts. Many times the borrower does not have enough equity to refinance to a better rate, but with the Obama housing plan helps these people from avoiding defaulting on their mortgage by making the mortgage payment more affordable with a lower interest rate after refinancing.

Related posts:

1. Can Current Mortgage Interest Rates Affect My Buying Power?
2. Does The FHA Accept Adjustable Rate Mortgages (ARMS)?
3. How will Mortgage Rates be Affected Once the Fed Pulls Back?
4. How Does The Current Base Rate Affect Mortgage Rates?
5. Can Current Interest Rates Affect My Borrowing Power?