A lot of people have been wondering how much of an effect the results of the pending US general election will have on government-backed mortgage interest rates. The short answer is: Probably not much.
Mortgage interest rates tend to be driven by several different market forces and the election is not projected to impact those forces directly in the short run. The near-record-low mortgage interest rates we have been seeing lately are the result of, among other things, aggressive purchasing of mortgage-backed securities by the Fed and by the ongoing popularity of US treasury bonds as a safe haven for money. Those things are not likely to change quickly regardless of who is elected in November so don’t expect any jolts one way another.
Of course over time it will matter who wins the presidential election and other congressional races but there is no way of telling now what will happen with rates regardless of if Romney or Obama is the next President of the United States. One thing that is certain is that mortgage interest rates will not stay at or near record lows forever. Sooner or later rates will rise again to more traditional levels. So we recommend you contact us today to learn more about the available government refinance help programs while rates are still at historic lows. Getting the process started in early November ought to allow most borrowers to close their new loans before the end of the year. To learn more fill in the form on the right.