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What Does The Inauguration Mean For Refinance Rates In Texas?

January 4, 2021 | By Reef Merhi

Table Of Contents

New legislation under the incoming Biden administration will undoubtedly impact household spending, mortgage rates. Mortgage rates will effect both your ability to apply for an FHA loan, and refinance rates in Texas.

From stimulus payments to tax increases, Americans are certain to see significant changes in their finances in Biden’s first year.

Here’s what you need to know in order to make smart money moves as the next administration takes office.

How the New Administration’s Inauguration Will Impact Your Household Budget

COVID-19 Relief

Under the Trump Administration, eligible Americans received two direct stimulus payments of $1,200 and $600. These payments were part of the CARES Act. The Cares Act was designed to help ease the financial strain caused by the coronavirus pandemic and subsequent lockdowns.

The Biden administration will likely push for continued unemployment aid, improvements to the Paycheck Protection Plan, and more direct stimulus payments.

The new administration will also push to gain support for the HEROES Act. To gain bipartisan support, they are likely to make cuts to the bill’s 2.2 trillion-dollar budget.

Student Loans

Student loan repayments have been a huge financial stressor for college graduates long before the coronavirus pandemic.

Under the new presidency, Americans will see democrats push for student loan forgiveness for public service individuals and targeted repayment programs.

The Biden administration will also rally to provide free community college and to double the Pell Grant amount for qualifying students.


While many Americans are worried about the tax increases under the new administration, it is mostly big corporations and individuals with income exceeding $400,000 annually that will be affected.

Under the Biden administration, many Americans will pay less income tax.

There is also a push to increase the Child Tax Credit as long as the pandemic continues, and the first-time homebuyer credit may also make a comeback under the new administration.

Current Refinance Rates in Texas

While the forecast predicted mortgage rates upwards of 5% after Trump’s inauguration, Americans saw record-low rates during his presidency.

In January of 2020, the average rate on a 30-year mortgage was 3.72%. Rates fell by an entire point by November 2020, a significant decrease that drastically reduced monthly payments for potential homeowners.

If you’re thinking about refinancing your home, rates are still low.

In Texas, the average mortgage rate on a 30-year loan is 2.87%. Mortgage rates dropped dramatically in the wake of the pandemic, but it is hard to say whether this trend continue after the new administration takes office.

How the Inauguration Will Impact Refinance Rates in Texas

Refinancing rates in Texas will change under the new administration.

Most projections predict that mortgage rates will stay low, so expect to see a demand for new loans and refinances.

If rates continue to stay low under the Biden presidency, homeowners should consider refinancing to reduce their monthly payments and lower the total amount they will pay on their mortgage loan. If you have an FHA loan in Texas, now may be a good time to refinance to a traditional loan.

Those looking to purchase a home for the first time can also take advantage of these low rates.

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