Election News
Today’s election results will come into play in tomorrow’s trading, assuming that clear winning congressional candidates are declared. It is safe to assume that we will see some type of reaction tomorrow morning, but just what happens if Democrats control one or both chambers, or if Republicans retain control of both, is just a guess. The bond market (relevant to mortgage rates) is sensitive to the deficit and U.S. borrowing. At one point in the past, we could predict the bond market would like to see Republican control of congress because they were known as the fiscally conservative party. However, the deficit has swelled so much recently while both parties have been in control, that neither qualifies as fiscally conservative anymore. It is my prediction that we will see a minor move regardless of which party(ies) control congress next session.