Presidential Elections and Interest Rates

Real Estate Sales Representative with Royal LePage Northshore

When asked by clients about financing new homes or investments, we talk about the impact of U.S. presidential elections on interest rates. My partner and I have had many different mortgages over the years and have come to the conclusion that it pays to arrange for a renewal date just prior to the U.S. election. It is hard to believe that somehow interest rates are manipulated to help incumbent U.S. political parties get re-elected, and frankly I am not sure why, but if you are arranging a new mortgage, you may wish to take into account this four year cycle of presidential elections and interest rates. It has certainly worked for us.  

Comments (3)

Randy L. Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Say it isn't so, politics coming into play?  LOL

I think you are right on the money.

Sep 08, 2008 07:52 PM

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Sep 08, 2008 08:18 PM
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Good eye!  I tell people this all the time... mainly because... IT'S TRUE!!!


Sep 08, 2008 08:44 PM
Alphonse J. Quenneville
Royal LePage Northshore - West Vancouver, BC

Hi Randy and Cameron,

My partner and I have been real estate investors since the early 80's this particular cycle became evident to us about 20 years ago.  Where possible, we have followed this rule and it has worked for us.  Now, speaking of politics, do you think it is possible that the same could be true with with the sub-prime debacle in the USA?  Could it be that after the Presendential election the flood gates might open and regulators force more banks to default then originally thought of?  I ask the question not because I know anything in particular, just something to think about, if interest rates work on this cycle what else could be tinkered with... 

Sep 09, 2008 10:38 AM