Episode 22 Transcript – rates vs US election

Hello! You’ve got Jessi Johnson live and my point of today is an intriguing fact with regards to interest rates you might want to consider when refinancing. Historically speaking, looking back at the past 8 years or the last 2 American presidential elections. If you look at the stats you’ll see a significant decline in American interest rates shortly after the presidential election. Leading up you’ll find a little bit higher rates and right after the rates will fall. Granted the American interest rates don’t directly dictate the Canadian obviously but they do have a significant impact on where we fall with our rates. You know when you balance the economy to some extent. An interesting thing to keep in mind generally speaking, a 5 year term is definitely most popular but something you might want to consider is I know a number of people who actually take 4 year terms and they refinance their 4 year terms right after a presidential election or right around that time. I do have a 4 year rate right now at 5.25% which is just a little bit above my 5 year rate at 5.14% but of course this will allow you to capitalize on this market strategy. Again it’s something that not everybody is going to want to use but some people may find it very beneficial. If you would like to contact me you can reach me at www.firsthomeinfo.ca and if you ask me my vote is for Barack Obama. Have a good day, bye!