Don't Count on Rates Dropping After the Election

Hoping for a post-election mortgage rate relief? Industry experts say don't hold your breath — rates could stay near 7–8% well into next year.

A lot of buyers and investors are sitting on the sidelines, waiting for the political dust to settle before making a move. The thinking goes: once the election is over, things will stabilize, rates will drop, and the market will open back up.

Here's the honest truth — don't plan your year around that assumption.

Industry analysts are forecasting a divided Congress and continued political gridlock, which historically doesn't create the kind of decisive policy environment that meaningfully moves mortgage rates. Rates are expected to hover in the 7% to 8% range for the foreseeable future, not because of politics, but because of deeper economic forces at play.

Here's what's interesting though: rising short-term rates from the Fed don't automatically mean higher mortgage rates. The 2-year Treasury — a key indicator — can actually signal that long-term rates may ease as the Fed nears the end of its hiking cycle. That's a nuance worth understanding.

For California buyers, this means the best strategy isn't waiting — it's getting prepared. Know your numbers, lock in when the opportunity makes sense, and work with a broker who can navigate this environment for you.

Ready to stop waiting and start planning? Contact us today to explore your mortgage options and get a current rate quote tailored to your situation.