Insights on Election's Impact on Mortgage Rates and Real Estate Market

Impact of the Election on Mortgage Rates

Melissa Cohn , a veteran in the mortgage industry , predicts that the outcome of the election could greatly influence interest rates , mortgage rates , and home affordability . According to Cohn , the policies and platforms proposed by a candidate can have inflationary effects , causing mortgage rates to fluctuate based on the rate of inflation . She specifically points out that a Donald Trump election win could lead to an increase in mortgage rates due to his potentially inflationary policies and tariffs.

Trump vs. Biden Policies

Cohn highlights the differences in economic policies between Trump and Biden , suggesting that Trump 's policies , such as tariffs and isolationist measures , could be inflationary for the country . On the other hand , Biden 's spending initiatives may also contribute to inflation . However , under Biden 's presidency , interest and mortgage rates have been decreasing , indicating a possible continuation of this trend if he is re - elected . Cohn believes that the Fed 's rate cuts under Biden would likely remain consistent , leading to a stable economic path.

Impact on Real Estate Market

The fluctuation in mortgage rates plays a significant role in the Real Estate market , with high rates keeping the market stagnant . Cohn emphasizes that lower rates are beneficial for real estate values as they attract more buyers into the market , thereby increasing prices . The current high - rate environment has resulted in a quiet real estate market , with potential buyers hesitant due to uncertainty surrounding the election . However , a decrease in rates under Biden could potentially revive the real estate market and stimulate buying activity.

In conclusion , the upcoming election poses a significant impact on mortgage rates , with potential implications for home affordability and the overall real estate market . Understanding the economic policies of each candidate is crucial in predicting the future trajectory of interest rates and housing market dynamics . As the election approaches , real estate professionals like Melissa Cohn closely monitor these developments to provide insights and guidance to buyers and sellers navigating the housing landscape.