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How will Election Results Effect Our Interest Rates?

By
Real Estate Agent with Keller Williams Realty CalBRE# 01308620

 

 It's Election Day - be sure to get out and vote. With all the displaced folks in the Northeast, it will be very interesting to see how the polls go. Rest assured, attorneys representing both sides of the aisle will be out in force to be sure there is no fraud and every vote is cast. 


How will Election Results Effect Our Interest Rates?

As far as interest rates are concerned, it really doesn't matter who wins the Presidential election, as there should not be a meaningful movement one way or the other. 

There's a sense that if Obama wins, the Fed accommodation (QE3) will continue as planned, where if Romney wins, maybe QE3 gets unplugged sooner. With the economy limping along, we don't think the Fed is going anywhere, anytime soon – QE Unlimited will continue until the labor market and economy substantially improve. And no matter who wins, there is a lot of wood to chop before we see a meaningful pickup in economic conditions - the necessary component to stop the printing press!

Christina Sanchez Hood
Palo Alto, CA
#SiliconValleyHOODS | Inspired Living

Emily, congrats on your feature.  Interest rates and Presidential elections?  I am not inclined to think it will matter for this election.  Enjoy your evening.

Nov 06, 2012 10:33 AM
Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

Emily, I think the big thing about the election being over... hopefully as of tomorrow... is that what is going on in this country will once again be dragged OUT of the unknown... and into it being a known quantity, so folks can feel a bit more secure, at least in the fact that they know what is going on.

I am in favor of Quantitative Easing 3... QE3... and I think the Fed should continue it.  I am guessing that since you are in California, your local and state economy is much slower, and has not at all rebounded like many other areas of the country.  Maybe the "consumer confidence" will improve once the election is over.

I am in Ohio, which is a MAJOR "swing state."  I will be so glad to see all of these darn political ads disappear from all, and I do mean ALL of the local radio and TV stations. 

Nov 06, 2012 11:44 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Emily - it may, however, increase the disinterest rate. Businesses are watching. Would be interesting to see

Nov 06, 2012 11:46 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I suspect the Fed will stay the course regardless of who wins the White House.  I'm just really anxious for the election to be completely over, so we can hopefully get on with life. 

Nov 06, 2012 11:58 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

No matter who wins, there is no incentive for interest rates to rise. Our economy is still struggling.

Sharon

Nov 06, 2012 12:16 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

The Federal Reserve Bank is not Federal, it has No Reserves, and it is not a Bank.  They do not care who the President is. 

Nov 06, 2012 12:45 PM
Anonymous
Ron Buck

Emily,

While the lower interest rates are helpful to our buyers they hurt the folks on fixed incomes. We are going to pay the piper for the artifically low rates by having dollars worth less. Inflation will come roaring back. That's OK since we are heading to a socialist state we might as well pay taxes with cheaper dollars.

Nov 06, 2012 01:53 PM
#15
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

I think the election being over will do more for buyer confidence than either candidate can do. People are relieved it's over, even if their candidates didn't win.

Nov 06, 2012 06:54 PM
Aaron Smith
Keller Williams Advisors - Edgewood, KY
Northern Kentucky Agent & Investor

I don't see interest rates moving anytime soon. However, I'm excited that those buyers and sellers who have said "I'm waiting until after the election to buy/sell" can now list their house or buy their house with me. :-)

Nov 06, 2012 07:42 PM
Edward Gilmartin
CRE - Boston, MA

With the election over you can bet the fed will slowly raise rates because he knows like everyone else that inflation is creeping back. It has long been the aim of the Fed to keep the dollar stable and fight inflation....not create jobs with low rates.

Nov 06, 2012 08:44 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Only time will tell now.  It will be an interesting 4 years.  Here we go!

Nov 06, 2012 09:02 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Emily, it will be interesting to see how the next four years go. With the current economic situation, I think the interest rates will remain low for a while yet.

Nov 06, 2012 09:18 PM
Scott Fogleman
New Home Team - Richmond, VA

Emily- low rates are helping sales. Since rates have been low for so long, I wonder if a little bit of a higher rate would set off a buying frenzy

Nov 06, 2012 09:18 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

We will see the release of pent-up actions and business plans after the elections...How they affect the people is the unknown

Nov 06, 2012 10:11 PM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

With the economy in slow motion rates should remain stable for the near future - long term likely to increase.

Nov 06, 2012 11:10 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I think we are in a slow recovery. .but going upward and that is a good thing. .. 

Nov 06, 2012 11:35 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Forget predictions, make the most of whatever they are and put energy into list, market, sell! In 1980's with 16% adjustable home loans you work harder, smarter and make the sales in new creative ways. Or died on the vine wearing a rusted "R" trying.

Nov 07, 2012 12:03 AM
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

I don't think they will effect, nor affect anything.  Low rates expected for the remainder of 2012 and 2013.

Like a slow moving ship, we've finally turned around, will start picking up speed and continue moving forward.

Good post.

Nov 07, 2012 12:32 AM
Bryan Robertson
Los Altos, CA

I think rates will move very little over the next 18 months while the economy continues to recover and the "hot spots" ease off while challenged markets continue to evolve.  Unemployment is still a bit high and consumer spending are not where they need to be to warrant raising rates.

Nov 07, 2012 01:24 AM
Anonymous
Emily Rose

Thank you all for the insighful comments!! I'm not sure how this post was featured but I'm so happy it was!!! 

Nov 10, 2012 01:51 AM
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