The interest rate cut of a half a percent is just the beginning of the lowering of interest rates. Leading up to presidential elections interest rates always are pushed lower right up to the election. Here are the past 5 elections and the quick overview of the interest rate market:
2020 Election (Biden vs. Trump)
● Mortgage rates were at historic lows due to the COVID-19 pandemic, with rates averaging around 3% or lower.
2016 Election (Trump vs. Clinton)
● Before the Election: Rates were relatively stable, lowering to around 3.5% to 4%.
2012 Election (Obama vs. Romney)
● Before the Election: Mortgage rates were at record lows due to the Federal Reserve's cutting
efforts to stimulate the economy after the 2008 financial crisis, averaging around 3.5%.
2008 Election (Obama vs. McCain)
● Before the Election: The financial crisis caused mortgage rates to drop as the Federal Reserve
cut interest rates to near zero to support the economy, with rates around 6% at the start of the
year, dropping to around 5%.
2004 Election (Bush vs. Kerry)
● Before the Election: Mortgage rates were relatively stable, lowering to around 5.5% to 6%.
In addition to the upcoming presidential election there are other factors that all come together to push interest rates lower:
