Interest Rates and The Election..
I have been getting a lot of phone calls on interest rates since the election. What happened?
Well, it appears that the bond traders who trade mortgage backed securities believe that the next administration will be very business friendly and are afraid of rising interest rates.
So they are selling off the low rate securities they have now in order to take advantage of rising rates. And, that is, subsequently, also causing rates to rise!
What is the prognosis?
There is a lot of pent up demand for higher rates. Traders have been sitting on securities that have been paying relatively flat rates for the past 8 years and are ready for a bump. So they are unloading what they have and seeking those higher rate instruments. This is causing mortgage rates to rise.
We anticipate that rates may rise another .25% to .50% throughout 2017.
As I often tell clients that want to wait, NOW is the best time to act. You never know what the future will bring. Rates are still at historical lows. So jump on them now while the getting is good!
If you’re thinking of buying a home or refinancing your mortgage DO IT NOW!