The mortgage market will have its ebbs and flows regardless of what’s taking place elsewhere, but the election can have a determined impact on things immediately. It is similar to the stock market where people are going to react, and the rates will change.
Let’s take a look at how the election can end up being a big player in the mortgage market even if it does not have a direct link most of the times.
Here are the primary reasons people of all over USA as well as Long Island realize the election will take a toll on the mortgage market one way or the other.
1) Creates Uncertainty
The main issue is uncertainty because the market doesn’t want to second-guess anything. It wants to remain stable, and that is tough when the policies are all over the place after an election.
If a new candidate wins, they bring about a real concern about dramatic changes and people wish to buy in a certain market where things won’t flip in seconds.
2) Can Fluctuate Rates
The rates for the mortgage will go up and down along with the election. If there is uncertainty, the lenders will start to increase the rates, and that is tough on those who are already tight with their money.
3) Can Show Decrease In Value
Buyers are often hesitant to purchase after an election because they want to feel assured about the mortgage landscape. This can be harmful to the housing market in the short-term.
If people are not buying, this means sellers have to start reducing their prices. This eats away into the investment potential, and that’s where people become unhappy.
The buyers can’t be blamed as they don’t want to take on a mortgage that might end up costing them a lot of money.
These are the ways an election can end up playing a role in the mortgage market.