Politics and rates are tied together — but not in the way you might think. It’s not about one party being better for rates over the other. Political leaders do not set mortgage rates; they fluctuate with the rise and fall of the market.
Now that Democrats have control of the Presidential Office, House and Senate, they will have an easier time prioritizing their goals. That’s where politics can impact mortgage rates — when any one party has the control, they have a greater ability to take on debt and spend money with autonomy. The more treasuries taken on means that the cost of bonds will drop, and interest rates will rise. However, as of now, it’s too soon to say what will happen with rates in the coming months. The Fed doesn’t predict a hike in rates until 2023-2024, but nothing is set in stone.
If you’re concerned about potential increases in mortgage (or any) loan rates, talk with one of our lenders. We are happy to review your current loan/debt situation and recommend a course of action to ensure you’re paying as little as possible for the money you’re borrowing.