Leading up to a presidential election, the U.S. housing market traditionally slows down a bit as uncertainty looms regarding future tax plans, employment trends, and other policy issues that could impact the economy moving forward. In many markets around the country, this November was certainly no different, and despite the election now being over, we could see an even slower holiday season than usual.
According to Freddie Mac, U.S. mortgage rates spiked post-election, with 30-year fixed mortgage rates now averaging 3.94% as of November 17th. It is worth noting, however, that although rates averaged 3.57% just one week prior, the increase is still slightly lower than the average mortgage rate of 3.97% this time last year.
There’s no doubt that historically low mortgage rates have continued to fuel the housing market in 2016, especially as more young and first-time home buyers enter the marketplace. Should the current trend continue, market projections predict one more surge in home sales, followed by somewhat of a slowdown across the board.
Even with 30-year rates approaching 4%, now is still a great time to buy in home in Nashville, especially as job growth, low inventory, and high demand continue to push home prices up. And with fewer home buyers active during the holiday season, competition may not be as strong should you hope to find something before the end of 2016.