Mortgage Watch

📉Rate Watch: Election Results Move Markets... and Mortgage Rates!

Mortgage Rates saw some favorable movement this week as investors reacted to the U.S. midterm election results.

The big story?

✅ Markets are pricing in a more divided government, which historically means fewer major policy changes, less government spending pressure, and potentially lower inflation. Investors responded by buying bonds, pushing Treasury yields lower and helping support mortgage rates.

✅ Stocks initially rallied on the news as Wall Street welcomed the prospect of greater policy stability. Later in the week, technology stocks sold off sharply as investors worried new political leadership could slow growth in the AI industry.

What does this mean for homebuyers?

✅ Mortgage rates don't react to election winners and losers directly. They react to what investors think those results mean for inflation, economic growth, and future Federal Reserve policy. For now, the bond market is signaling slower growth and lower inflation risk, which is generally good news for mortgage rates.

Bottom Line: Election results created volatility, but bonds largely benefited from expectations of a more predictable Washington. That's helping keep downward pressure on mortgage rates heading into November. 🏡

 

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SOURCE & AUTHOR | Keith Murphy Branch Manager – Essex Mortgage NMLS #330827 Direct: 714-309-1140 Apply: www.GoTeamMurphy.com

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About the Author
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Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 48 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 29 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.