Wherever you look, you can find opinions on both sides. Some say an election year has no direct bearing on interest rates while others say it most certainly does. There is evidence to back both views. One thing that is for certain: given that this election is unlike any other election, all bets are off.
Neither candidate has intensely focused on the issue of housing so there does not appear to be a direct policy that will largely impact the industry. But as humans we have a fear of the unknown. So yes, during an election year buyers tend to be uneasy. Markets & stocks do not like uncertainty either. This could, in turn, affect job creation, unemployment and the overall strength or weakness of the economy. That of course, trickles right down to housing.
Right now Wall Street is leaning toward Hillary Clinton being elected and the market is priced as such. If she does become president, yes there may be a slight increase in rates but Wall Street likes someone who is not likely to make radical changes. If Trump is elected, it will be like going back to July 3rd when we saw the effects of BREXIT, which largely affected consumer and manufacturer confidence.
Whatever will happen we will be looking at a 4-yr cycle until the next election. So I wouldn’t hinge my decision on an election, I would hinge it on the needs of your family and your pocketbook. One thing I can say, in looking back at rate trends we will still most likely still be enjoying the lowest rates in history. Just look back at 1981 where the ANNUAL AVG was 16.63% (SEE HISTORY BY YEAR AT http://www.freddiemac.com/pmms/pmms30.htm)
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