With the recent presidential election, many people are wondering how would it influence mortgage rates, and real estate options. It is common to have uncertainty in the market in an election year. Whether you are still paying off your mortgage or shopping for the right one, below are some real estate market possibilities after elections.

First time home-buyers Advantage on Proposed Tax Credit

During campaigns of the newly elected Joe Biden, he proposed the 15,000 tax credit for first time home-buyers. The new president's proposal influences mortgage rates and may have a ripple effect to minority households. We could presume that the demand for affordable housing will surely be on the rise. However, we would also need to further look into if there would be sufficient supply of housing to meet its demand in 2021.

Benefits of Privatization or Conservatorship of Mortgage Financiers

Fanie Mae and Freddie Mark are considered to be two largest mortgage financiers in the world. The plan to return Fannie Mae and Freddie Mac to return to the private sector started in the term of the previous president. With the new president, there might be changes for the said plan. It is highly likely that it will be maintained under conservatorship. It may be possible that after the current pandemic, the new administration may regulate these mortgage financiers, as utilities, to ensure or maintain cheaper mortgage rates.

Mortgage Rates

Most people may consider it wise to purchase a home given the low interest rates. Normally, it is expected to be high before, during and after election). In contrast, following the outcome of the election, interest rates are still on the low. While the sense of instability may persist , the real estate industry continues to be at the positive position.

If you want to gain more understanding of the current real estate market and are learn more about your options, you may want to contact one of our mortgage professionals for more information.