Former President Donald Trump is headed back to the White House, but what will that mean for mortgage rates?
Just days before the election, Redfin surveyed 1,002 voters to get their opinion. Among those queried, 32% believed mortgage rates would fall if Trump won, and 28% thought they would rise.
When it came to Trump’s opponent — Vice President Kamala Harris — just 23% of respondents thought mortgage rates would fall during a Harris presidency, while 32% forecast they would rise.
There were probably many factors behind Trump’s victory, but it’s possible that a hope that he would be better for housing affordability via lower mortgage rates was among them.
In the Redfin survey, more than one-third — 38% — of respondents who had already voted said housing affordability was a factor when they chose between the two candidates. The fact that more respondents felt Trump would preside over a period of falling mortgage rates suggests that he may have gained an edge among those worried about the high cost of buying a home.
The impact of housing affordability on the election extended beyond the presidential race, with 40% of early voters saying the issue of affordability also influenced which candidates they voted for in local races.
It is worth noting that presidents typically do not have a direct impact on the direction of mortgage rates. As Redfin notes, economic conditions and the actions of the Federal Reserve are more likely to move mortgage rates in one direction or another.
However, presidents can enact policies and create conditions that might indirectly influence the direction of rates.
If you are in the market for a new home, check out “What Homebuyers Need to Know About the New Rules for Paying Real Estate Agents.”
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