RATE UPDATE 11/06/26: Election Helps Rates

The election is over and rates like it.

ANALYSIS

The Democrats won big (obviously).

But why did rates respond by moving down?

Three reasons:

First, and least important, is the hope that it accelerates an end to the Iran conflict.

That would drop gas prices.

And reduce inflation.

Lower inflation = lower rates.

Second, we will now have a split government.

This tends to mean more fiscal responsibility.

Why?

The Republicans can't pass big spending cuts.

And Democrats can't pass big spending bills.

Both scenarios mean less borrowing.

And lower deficits.

Which rates love.

Third, and most importantly...

This puts more pressure on the AI trade.

Many newly elected Democrats support data center moratoriums.

That's a problem for AI companies.

If their data center buildout slows...

Their stocks will take a pummeling.

(Just like yesterday)

That money could flow to Treasuries and drive down rates.

Rates ended the week at 6-week lows.

WHAT'S NEXT

The consumer inflation report lands on Tuesday.

A low number could sustain the downward momentum.

Have a great weekend!

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About the author: Matt Henderson is a Partner and Senior Loan Officer at Greenlight Mortgage Group in Boulder, Colorado. He writes this rate update every Friday.

Read Matt's bio and get in touch

Matt Henderson | Greenlight Mortgage Group, a division of Xpert Home Lending, Inc. | (303) 748-8400

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Educational only. Not a commitment to lend, a credit approval, or an offer of rate or terms. Any figures are estimates that vary with credit, property, and your full scenario. Always compare Loan Estimates before choosing a lender. Equal Housing Opportunity.