RSS 2.0   Atom

Recent News

Week of Nov. 27th-Hot or not? The housing market has people holding their breath

November 27, 2016

U.S. home sales were slowing even before Donald Trump emerged as the next president of the United States. Now in the wake of Trump’s surprise victory, mortgage rates are rising fast. Lenders are concerned that Trump will aggressively cut taxes and boost infrastructure spending, which would drive up the cost of managing the U.S. debt, increase inflation and give the Federal Reserve cause to raise the key rate that underpins all consumer borrowing.

The questions on many investors’ minds right now are whether the days of historically low mortgage rates are over, and what will happen to the housing market if rates rise faster than expected under President Trump.

The 10-year U.S. Treasury yield — the bellwether for mortgage rates — had its biggest three-day jump in more than seven years after Election Day, according to Bloomberg data. Meanwhile, the average 30-year fixed mortgage rate rocketed from 3.62 percent to just more than 4 percent in the week after the election, marking its steepest jump since June 2013 when the lending market had its “taper tantrum” over the Fed winding down its quantitative easing program. Continue reading...

Return to Recent News Main Page