Mortgage Rates Spike After Trump's Election—Should You Lock in Yours Now?
In the wake of Donald Trump‘s surprise win at the ballot box, there have been heated demonstrations as well as celebrations, turbulence in the bond markets—and higher mortgage rates.
Rates climbed nearly 0.2% since the election, to 3.95% for 30-year fixed-rate mortgages of $417,000 or less, according to the Mortgage Bankers Association. That’s the highest they’ve been since January. And while that may not sound like much, it can add up each month in higher mortgage payments.
So should aspiring homeowners rush to sign on the dotted line for a Sedona home for Sale to lock rates in before they go up even further? Or are they expected to fall?
“If your intention is to buy a house, you need to start looking for it now,” says Don Frommeyer, CEO of the National Association of Mortgage Brokers. “With the new administration, we don’t have any idea what’s going to happen with new rules and laws and changes that could be made.”
Although rates may continue to rise, they’re not expected to keep shooting up.
“We are expecting rates to go up next year,” says realtor.com®’s chief economist, Jonathan Smoke. But he adds, “I doubt we will see much additional movement before the end of the year.”
Mortgage rates are rising because they typically follow the bond market. After Trump’s win, many investors got out of bonds and into stocks under the expectation that the economy will improve under his presidency. That could increase inflation, which could lessen the value of the bonds. Hence, the rise in mortgage rates. So while it is possibly good for business, it could be rough on Mortgage Rates. I know very good Mortgage Brokers here in Sedona when you are ready to look at Sedona Real Estate and can easily provide you with their names and contact numbers. So, if you are on the fence - get off and buy your Sedona Home now! For all your Sedona Real Estate needs you can call, text me or email me here.