Housing Market in an Election Year: What You Need to Know

The housing market can seem unpredictable, especially during an election year. However, there’s no need to worry. The housing market continues to operate based on broader economic factors, regardless of political events. Here’s what you need to know about the housing market in an election year.

The Housing Market Is Resilient

Historically, the housing market does not wait for an election to end before it moves. Life events such as job changes, having children, marriage, divorce, and even death, drive people to buy or sell homes continuously. These personal milestones keep the market active and moving, regardless of whether it’s an election year.

Election Year Myths

One common myth is that a single political candidate can significantly move mortgage rates. In reality, mortgage rates are influenced by various factors, not just politics. The Federal Reserve Board plays a crucial role in this process, weighing economic factors rather than political ones when it comes to setting the Fed funds rate. This rate indirectly influences mortgage rates, but it is not dictated by political events.

The Fed’s Role in Interest Rates

Understanding the difference between the Federal Reserve’s role and the direct impact on mortgage rates is essential. The Federal Reserve controls the Fed funds rate, which is the rate at which banks lend money to each other overnight. While this rate can influence mortgage rates, it is not the sole determinant. Mortgage rates can fluctuate based on a range of economic factors, including inflation, employment rates, and overall economic growth.

Why You Shouldn’t Wait

Given the continuous movement of the housing market, delaying your plans due to an election year isn’t necessary. The market’s dynamics are shaped by ongoing demand and supply, which remain relatively stable regardless of political cycles. If you’re considering buying or selling a home, it’s more important to focus on your personal circumstances and the current market conditions rather than the election year.

Conclusion

The housing market will continue to function through any election year. Don’t let political events put your family’s plans on hold. If you have questions or are ready to start your home buying journey, let’s chat soon. 2024 can be the year you welcome your new home.