Interest rates post Trump election have surprised just about everyone.
It’s been a long time since anyone lender was quoting conventional conforming 30-yr fixed mortgage rates at 4% or higher for their best customers, but as of yesterday, every mortgage lender is doing so.
What a difference a week makes, last Monday, the day before the election, rates averaged 3.625%. Over the past 3 days business day (Friday the markets were closed for Veterans Day), rates have moved higher and faster than the last big 3-day move back in 1987, where rates moved higher more quickly on an outright basis.
If you were on the fence for a refinance. You just lost, and should seriously consider locking now if it even remotely still makes sense.
If you were in the market to buy a house, rates are still great, and there is no reason not to buy a home. But consider the average $230,000 home here in Minnesota will cost you $50 more per month at a 4.00% rate versus a 3.625% rate.
Why have mortgage interest rates gone up?
There are a lot of factors, but the biggest is simply the markets are feeling good about the direction of the country with the Donald Trump election. This has sparked the stock market, which has seen very nice gains. When stocks are good, mortgage rates are bad. When stocks are bad, mortgage rates are good.