Homebuyers often adjust their plans for the uncertainty that an election year can bring. With less than 100 days until the 2024 election, a majority of buyers are taking note.
That’s according to survey results released Thursday by Veterans United Home Loans, which show that 60% of prospective buyers are taking the election into account. Even more dramatic is that 38% of homebuyers are pausing their search until after Election Day.
“The upcoming election is clearly weighing on the minds of prospective homebuyers,” Veterans United vice president Chris Birk said in a statement. “Americans are considering the potential impacts of political changes on the economy and housing market, leading many to adjust their buying timelines accordingly.”
The quarterly survey polled 900 prospective homebuyers, including veterans, current military service members and civilians. The results highlight some interesting splits between veterans and civilians.
Only 25% of civilians plan to buy in the next six months, while 40% of veterans said the same. When asked if they feel better about their finances compared to one year ago, 63% of veterans and 59% of civilians said yes. Each of these numbers are higher than a year ago.
If home shoppers follow through on their plans to wait until after the election to buy, it could spell more bad news for a stalled housing market, as the number of buyers waiting on the sidelines are already prevalent. But affordability and mortgage rates are the primary reasons why they’re holding off.
The Federal Reserve is likely to lower interest rates in September, and could do so multiple times before the end of the year. If rates do come down, buyers who say they want to wait until after the election will be faced with a choice — take advantage of lower rates before the election or wait out the uncertainty brought by what’s already been a wild election cycle.
Veterans United Home Loans is a full-service lender based in Columbia, Missouri. According to data from the U.S. Department of Veterans Affairs (VA), it financed more than $17 billion in VA loans in 2023, making it country’s largest VA lender.
