Interest Rates Rise On Election Day

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August 7, 2016 by Jeff Lowen

Or do they?

I hear many people; within the industry and outside of it, have conversations about the interest rate. Some intelligent, some no so much. Perhaps, it’s a topic of conversation at the local watering hole or between clients and agents or lenders. I just know as long as I’ve been around the real estate industry, which sometimes when I try really hard to remember, started when they were building homes out of mud and twigs, the interest rate has been a hot topic.

I’ve included an infographic here to show the impact a change in mortgage interest rate will have on you, the borrower. However, in another perspective, I’ve included a graph of the Fed Funds Rate since 1971. To read more about the link between the effect of the Fed Funds Rate on home loans check out this article by Investopedia.

Historically, here’s a comparison of interest rates over the last forty-five years.

Screenshot 2016-08-07 at 05.05.36.png

I think it’s safe to say, from this perspective anyway, that an election year affects the interest rate a minimal amount. Yet, if that minimal amount equates to $200 more or less on your home mortgage, would you mind? Of course!

And, here are some highlights of your infographic:

  • Interest rates have come a long way in the last 30 years.
  • The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget.
  • Interest rates are at their lowest in years… RIGHT NOW!
  • If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to act!


I think the moral of the story here is, if you’re remotely thinking of jumping in the real estate adventure, now is a great time because money is historically inexpensive to borrow. An obvious benefit for buyers, but if you’re considering selling; this means more buyers can qualify for a loan to buy your house!

A definite win-win!


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