Why Some Home Buyers Have Their Eyes on Election Day

NEW YORK (Credit.com) — Housing affordability is hovering near all-time highs thanks to factors including low mortgage rates and home prices, but there is still a bit of uncertainty in the market due to the election season.

While the majority of Americans say November’s upcoming has no bearing on their decision to enter the housing market, a significant percentage also note it would affect their decision, according to a poll from Harris Interactive.

In all, just 4% say the upcoming election would lead them to buy a home; 12% say it might cause them to delay a planned home purchase; and 13% say they would certainly push back such a transaction until after the election is settled. A solid 53% say the election has no bearing on their purchase, and another 17% say they simply weren’t sure.

“It’s understandable that a considerable number of people say the upcoming election would give them pause for thought,” said Rick Allen, chief operating officer for Mortgage Marvel. “There has been speculation that tax policies could change depending upon who wins. Some have even indicated that the longstanding deduction for mortgage interest could be eliminated.”

On a regional level, the South had the highest percentage of potential borrowers who noted the election and its associated uncertainty would delay their home purchase decisions, the report says. Another 12% say it might. In the West, 61% of people say the election has no effect on their decision to buy a home.

When looking at age-related demographics, however, it seems younger consumers are being more cautious. In all, 42% of males aged 18 to 34 say the election wouldn’t effect their decision, compared with 57% of man over 55.