Is it a good time to refinance before the US elections or should I wait?

Seeking Advice
1

I’m thinking about refinancing my mortgage. My current rate is 7.625%, and most lenders are now offering 6.5% or 6.6%, with the closing costs covered. I missed the chance to lock in a lower rate over the last couple of weeks, so I’m wondering if I should refinance now or wait until after the elections to see if rates drop.

2

The president doesn’t set interest rates. If the numbers work for you, go ahead and do it.

3

Harley said:
The president doesn’t set interest rates. If the numbers work for you, go ahead and do it.

True, the president doesn’t control rates, but uncertainty in the market can have an impact. Election and inauguration periods often bring more certainty, which can affect things.

4

@Orin
That’s true for the stock market, not interest rates. Historically, elections don’t affect the federal funds rate.

5

What happens to mortgages if the country falls apart? If things really go south, do we still have to pay our mortgages?

6

Laken said:
What happens to mortgages if the country falls apart? If things really go south, do we still have to pay our mortgages?

Now that’s the kind of question we should all be asking.

7

Laken said:
What happens to mortgages if the country falls apart? If things really go south, do we still have to pay our mortgages?

There are some things you just can’t avoid. Make sure you pay your taxes. The IRS is one organization that will never go away, no matter what.

8

I wouldn’t do anything until after the election. When I bought in January, my rate was 6.375%, and even that felt high. I’m hoping rates drop into the low 5’s or even high 4’s, but I wouldn’t make a move until early next year to see what happens.

9

@Phoenix
I’m with you on that. With how things have been going the past month or so, we might be in for a ‘new normal.’

10

Kim said:
@Phoenix
I’m with you on that. With how things have been going the past month or so, we might be in for a ‘new normal.’

Exactly. If rates stay high, we might all just have to focus on paying down the principal faster, even though that’s not ideal.

11

I’d refinance now. Rates have been creeping up since early September.

12

I work in the mortgage industry and have looked at data going back 40 years. Elections don’t impact interest rates.