|INTEREST RATE JITTERS IN AN ELECTION YEAR?
Real Estate Trends in Arrowhead Woods. 4/25/16 Issue 211
Freddie Mac released its’ monthly Outlook for April showing that while recent data darkened the growth outlook for the first quarter, expect housing to maintain its momentum in 2016 and be an economic engine of growth.
For the first quarter, the 30-year fixed rate mortgage averaged 3.7%. They expect rates to average 4 percent in 2016.
It’s an election year. After looking at Freddie Mac’s 30-year fixed mortgage rates during election years, over the decades, fluctuations in rates from start to finish of election years have actually been small. On average, those changes have been less than one-half of a percent (.47%).
Rates in 2016 started at near historic lows once again. It bodes well they are unlikely to spike higher simply as a result of who wins the Oval Office.
Since 1971, there have been 11 presidential elections – six won by Republicans and four by Democrats. Over this span, fluctuations in rates from start to finish of election years have actually been quite small. On average, those changes have been less than one-half of a percent — .47%. It was exceeded in 1980 when, as interest rates approached historic highs, there was a net increase of 1.9% when the Reagan Administration took office.
Historical Rates from Freddie Mac on 30 Year Fixed Rate Mortgages, now lowest since 1986.
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