What's happening with mortgage rates after the election?

Now that the midterm election is over, will buying a home be any cheaper?

So far, mortgage rates have fallen since Tuesday's Democratic takeover of the U.S. House and Senate as well as a number of state offices around the country even as votes continue to be counted.

The weekly average mortgage rate in the U.S. dropped for a third straight week Thursday, to 7.18%, for a 30-year, fixed-rate loan, according to the Federal Home Loan Mortgage Corporation, better known as Freddie Mac.

Rates for the same type of mortgage that are updated daily have also dropped this week. By midday Thursday mortgage rates were down to 7.17% at Mortgage News Daily from 7.3% on Tuesday's Election Day.

The Wall Street Journal reported Wednesday the "rebuke" delivered by voters to President Donald Trump and Republicans "amid widespread frustration over the economy" triggered a stock market surge and a drop in the yield on the U.S. Treasury bonds tied to mortgage rates.

Oil prices fell sharply because the election results are seen as increasing the chances of ending the war against Iran, according to the newspaper, while "inflation expectations also eased substantially."

Earlier this year, mortgage rates had dipped below 6% for the first time since 2022. But then the U.S. and Israel launched a war against Iran, rattling the economy and sending borrowing costs for homebuyers towards 8% .

Whether the current slide in mortgage rates continues remains to be seen.

Thursday, the stock market took the worst tumble in nearly two years as investors sold off AI and other tech holdings over concerns tighter regulations could be coming, The New York Times reported. Bonds are traditionally seen as a safe haven for investors when stocks fall.

In a Thursday post , Realtor.com senior economist Hannah Jones said it's not yet clear if the shift in political power in Washington, D.C., will be felt by a U.S. housing market that has been struggling .

"Many newly elected representatives have voiced discontent with the ongoing conflict in the Middle East, which has contributed to rising inflation, so any progress toward resolution could mean lower inflation and softer mortgage rates ahead," Jones said.

Factors such as a strong jobs report could "slow the pace of rate declines in the near term," she said.

Even with the easing in rates already seen, she noted they still sit above 7% , high enough to stop many buyers from making a move in the current market. At the same time, sellers facing weak demand are also holding back, Jones said.

But that's leading to price reductions in more than 40% of active listings nationwide, she said, putting "buyers who can afford to participate in a relatively strong position, facing less competition and more price cuts ."