What will happen to interest rates and home values after a presidential election?

Let's delve into the housing market trends during the first year of the elected president's term following the last eight presidential elections, including the average change in interest rates, whether the residential real estate market appreciated or depreciated, and the median home prices for both the United States and Denver:

1. 2021 (Joe Biden):

   • Average Interest Rate Change (2021): Decreased by approximately 0.5% (from around 3.0% to 2.5% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Despite pandemic challenges, the housing market continued to appreciate due to low inventory and high demand.
   • Median Home Price (US, 2021): Approximately $340,000.
   • Median Home Price (Denver, 2021): Approximately $575,000.

2. 2017 (Donald Trump):

   • Average Interest Rate Change (2017): Increased by approximately 0.75% (from around 4.25% to 5.0% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Home prices continued to rise as the housing market recovered from the Great Recession.
   • Median Home Price (US, 2017): Approximately $245,000.
   • Median Home Price (Denver, 2017): Approximately $385,000.

3. 2013 (Barack Obama):

   • Average Interest Rate Change (2013): Increased by approximately 1% (from around 3.75% to 4.75% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Home prices stabilized and began to rise as the housing market recovered from the Great Recession.
   • Median Home Price (US, 2013): Approximately $210,000.
   • Median Home Price (Denver, 2013): Approximately $295,000.

4. 2009 (Barack Obama):

   • Average Interest Rate Change (2009): Decreased significantly by approximately 3% (from around 5% to 2% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Despite the financial crisis, home prices began to stabilize and recover.
   • Median Home Price (US, 2009): Approximately $170,000.
   • Median Home Price (Denver, 2009): Approximately $230,000.

5. 2005 (George W. Bush):

   • Average Interest Rate Change (2005): Increased by approximately 1% (from around 6.75% to 7.75% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Home prices continued to rise rapidly, fueled by the housing bubble.
   • Median Home Price (US, 2005): Approximately $230,000.
   • Median Home Price (Denver, 2005): Approximately $290,000.

6. 2001 (George W. Bush):

   • Average Interest Rate Change (2001): Decreased by approximately 1% (from around 6% to 5% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Despite some economic uncertainty, home prices continued to rise.
   • Median Home Price (US, 2001): Approximately $180,000.
   • Median Home Price (Denver, 2001): Approximately $235,000.

7. 1997 (Bill Clinton):

   • Average Interest Rate Change (1997): Decreased slightly by approximately 0.25% (from around 8% to 7.75% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Home prices appreciated moderately as the economy remained strong.
   • Median Home Price (US, 1997): Approximately $160,000.
   • Median Home Price (Denver, 1997): Approximately $200,000.

8. 1993 (Bill Clinton):

   • Average Interest Rate Change (1993): Decreased slightly by approximately 0.25% (from around 8.75% to 8.5% for a 30-year fixed-rate mortgage).
   • Market Trend: Appreciation. Despite economic challenges, home prices generally continued to rise.
   • Median Home Price (US, 1993): Approximately $140,000.
   • Median Home Price (Denver, 1993): Approximately $180,000.

These insights provide a historical perspective on how the housing market typically behaves during the first year of a newly elected president's term, including changes in interest rates, trends in home prices, and overall market appreciation or depreciation. Keep in mind that these are historical patterns and actual outcomes may vary based on various factors, including economic conditions, government policies, and local market dynamics.