Will Mortgage Rates Change with Biden Dropping Out and the Presidential Election Going On?
webadmin • July 28, 2024
Will Mortgage Rates Change with Biden Dropping Out and the Presidential Election Going On?
The 2024 presidential election is shaping up to be an interesting one. With President Joe Biden stepping down from the race, many are wondering how this will affect mortgage rates. Let's break down what we know.
From this data, we can see that mortgage rates don't always follow a predictable pattern during election years.
The Role of the Federal Reserve and Mortgage Rates
What is the Federal Reserve?
The Federal Reserve, often called "The Fed," plays a big role in the U.S. economy. It doesn't directly set mortgage rates, but its actions can influence them. The Fed sets a target for the federal funds rate, which affects how much banks charge each other for short-term loans. This can impact other interest rates, including mortgage rates.How Does the Fed Influence Mortgage Rates?
While the Fed doesn't set mortgage rates, its policies can affect the economy. For example, if the Fed raises its target rate, it becomes more expensive for banks to borrow money. This can lead to higher mortgage rates. On the other hand, if the Fed lowers its target rate, mortgage rates might go down too.Biden Stepping Down: Immediate Effects on Mortgage Rates
President Joe Biden announced on July 21, 2024, that he would not run for re-election. This decision came after pressure from his own party and donors who were hesitant to fund his campaign.Will Biden Stepping Down Affect Mortgage Rates Right Away?
According to experts, Biden's decision to step down is not likely to have an immediate impact on mortgage rates. Michael Collins, a financial expert, says that changes in interest rates are mainly driven by economic factors and decisions made by the Federal Reserve, not by individual political candidates.The Federal Reserve and the Election
What Happens During Election Years?
Election years often bring uncertainty, which can affect financial markets. Historically, the stock market tends to be more cautious during election years, which can also influence mortgage rates.Historical Data on Mortgage Rates During Elections
Let's look at past election cycles to see how mortgage rates have behaved:- Nov-Dec 2020: Rates slightly increased by 0.03%
- Nov-Dec 2016: Rates increased by 0.45%
- Nov-Dec 2012: Rates decreased by 0.04%
- Nov-Dec 2008: Rates decreased by 0.80%
From this data, we can see that mortgage rates don't always follow a predictable pattern during election years.
Potential Long-Term Effects
Kamala Harris as the Democratic Candidate
Vice President Kamala Harris has stepped in as the Democratic candidate following President Biden's decision to step down. The policies and economic plans she supports could influence the direction of interest rates. If her campaign promotes increased government spending, this might require additional monetary policy support, potentially affecting mortgage rates.What About the Federal Reserve's Decisions?
The Federal Reserve is expected to make its next decision on interest rates at the end of July. Most experts believe that the Fed will not cut rates at this meeting, but there is a high likelihood of a rate cut in September. These decisions are based on economic conditions, not political changes.Conclusion
So, will mortgage rates change with Biden dropping out and the presidential election going on? The answer is complicated. While Biden's decision to step down might not have an immediate impact, the uncertainty surrounding the election and the actions of the Federal Reserve could influence mortgage rates in the future. For now, it's best to stay informed and watch how the situation develops. If you have more questions about mortgage rates or need advice on your home loan, feel free to contact us. We're here to help you navigate these uncertain times.
Here at Luminate Home Loans, we’re always looking for ways to offer more value to our clients and partners. That’s why we’re thrilled to announce that we’re now a wholly owned subsidiary of Luminate Bank®—and soon, we’ll officially transition under the Luminate Bank® name.
For years, homebuyers have been hoping for a return to the ultra-low mortgage rates seen during the pandemic. But as we move through 2025, it’s becoming increasingly clear that today’s rates—hovering between 6% and 8%—aren’t going anywhere.
Luminate Bank® Welcomes Josh Eifert as Chief Financial Officer, Honoring Legacy of Dave Turk [Minneapolis, Minn.] – [2/4/2025] – Luminate Bank® is proud to announce the appointment of Josh Eifert as its new Chief Financial Officer, succeeding Dave Turk, who has played a pivotal role in shaping the company's strong financial foundation. Josh brings a wealth of experience and strategic vision to Luminate Bank, with 26 years in the banking industry. Most recently, Josh served as CFO at Tradition Capital Bank in Edina, Minnesota, where he led the financial strategy during its remarkable growth from $300 million to more than $2.5 billion in total assets. Before his tenure as CFO, Josh contributed to Tradition Capital Bank in other key financial roles. He began his career with Norwest and Wells Fargo Banks, gaining extensive expertise in financial and operational capacities. Luminate Bank's leadership transition reflects the company's thoughtful succession planning, ensuring its financial strategies remain robust and forward focused. Under the leadership of Dave Turk, Luminate Bank has built an exceptional financial infrastructure, delivering consistent results and creating a foundation that positions the company for continued success. Luminate Bank's CEO, Marc Campbell, shared his confidence in the appointment: "Josh not only brings exceptional financial acumen and strategic insight to Luminate Bank, but he also embodies the principles that define our organization: integrity, innovation, and a steadfast commitment to excellence," Luminate Bank's CEO, Marc Campbell, shared with confidence. "His leadership will ensure our financial strategies succeed and inspire confidence across all who depend on us." "I am honored to join Luminate Bank at such an exciting time. The company's remarkable history of financial excellence and its forward-thinking approach align perfectly with my values and vision," stated Josh Eifert. "I look forward to collaborating with the talented leadership team to build on this strong foundation and drive continued success for our customers, employees, and stakeholders." Josh graduated from the University of Minnesota with a degree in finance and completed the Graduate School of Banking at Colorado. CEO Marc Campbell expressed gratitude for retiring CFO Dave Turk's contributions, saying, "Dave has been instrumental in positioning Luminate as a financial leader. His dedication, insight, and stewardship will always be a part of our company's legacy." Josh Eifert will officially assume his role on February 18, 2025. About Luminate Bank® At Luminate Bank, We Open Doors—empowering individuals and families to achieve their financial dreams through personalized service and innovative digital solutions. As a nationwide bank headquartered in Minneapolis, Minnesota, we are committed to helping our clients meet their financial goals with a blend of modern technology, traditional values, and the trusted guidance of experienced professionals. Known for our exceptional commitment to customers, we take pride in delivering a seamless, supportive experience for every step of the journey. Our dedicated mortgage division has branches and a team of loan originators across the US, making expert home financing solutions accessible to communities nationwide. Luminate Bank is committed to safeguarding your money and accounts with FDIC insurance coverage up to applicable limits. Learn more about how we can open doors for you at www.luminate.bank , follow us on Instagram, LinkedIn, and Facebook, or call (952) 939-7200. For media inquiries, please contact: Debbie Schwake, CMO debbie.schwake@luminate.bank
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