As election season unfolds, the financial world has witnessed something unexpected: mortgage rates have fallen below 7% for the first time in weeks. It’s a surprising turn in the market—especially considering that the Federal Reserve’s recent rate cut was largely anticipated and had no direct connection to the sharp drop in rates.
In fact, much of this shift can be traced back to the volatility created by election-related market activity. While the Fed’s 0.25% rate cut was expected, it was the heightened trading across bond markets, spurred by political tensions and uncertainty, that truly triggered a notable decrease in mortgage rates. It’s a phenomenon that’s been seen before, where political events—whether it’s elections, policy shifts, or market uncertainty—create volatility in financial markets, which in turn opens up opportunities for those paying attention.
For anyone looking to buy or refinance, this drop in mortgage rates is more than just a statistic—it’s an invitation. If you’ve been on the sidelines, waiting for the right moment to jump in, now could be the perfect time. For homebuyers, it means lower monthly payments, potentially making homeownership more affordable despite the still-high home prices driven by low inventory. As we head into November, a traditionally slower time in the housing market, there may also be less competition among buyers, which could work to your advantage.
For those considering refinancing, the drop could bring significant savings, especially for homeowners with adjustable-rate mortgages or older loans. While the rates of 2020–2021 are still the benchmark for the lowest mortgage rates in recent memory, refinancing today could still offer a reduction of 0.5%–1%—a meaningful shift for many who secured higher rates earlier in the past few years.
However, the window may not last long. The market is volatile, and with the election behind us, the bond markets are likely to stabilize, which could bring rates back up in the coming weeks. If you’ve been waiting for the right time, this may be it—before the magic fades. Whether you’re buying your first home, upgrading, or refinancing, the next few weeks could offer one of the best opportunities we’ve seen in a while.
So, what are you waiting for? Jump in now—this election-season market magic might just be your ticket to better rates and brighter financial opportunities.
LendingTree. (2024, November 6). Mortgage interest rates forecast for 2024: Will rates continue to drop? LendingTree. Retrieved from https://www.lendingtree.com/home/mortgage/rates/mortgage-interest-rates-forecast/
Graham, M. (2024, November 7). Tricky day… Mortgage rates fall significantly, but not because of the Fed. Mortgage News Daily. Retrieved from https://www.mortgagenewsdaily.com/markets/mortgage-rates-11072024
