Real Estate Insider Blog

Showing 1-1 of 1 articles.
17
Nov
2016

What will post-election mortgage rate increases mean for the Clearwater area housing market?

The bond market started going haywire after the election -- here's the result

Immediately after the election, the bond market was splattered all over the windshield, taking mortgage rates up with it.

  • Once you have destabilized the bond market, re-stabilization takes time. Often a long time.
  • Our election surprise has unpleasant consequences for mortgages and housing. Not just sometime in the future, it starts right now and if history shows the rates can spike considerably. Change is always a certainty and rates always change.

The most immediate concern right now is that the 10-year T-note has soared to 2.07 percent, the first time so high since last January and wiping out six months of chart support near 1.80 percent — and the next support is near 2.50 percent, mortgages 4.25 percent-4.50 percent.

“Mortgage rates have spiked more than 20 basis points following the results of the presidential election on Tuesday, as we assess the degree of political and economic uncertainty that Trump’s win introduced to the market and as investors move away from U.S government assets, including U.S. mortgage-backed securities, in favor of relatively safer investments,” said Erin Lantz, Zillow Group vice president of mortgages, in a statement.

“As we continue to learn more about shape of the new administration, their policies, and the global reaction, we expect more volatility as markets try to put a price on the political...

View Full Article

Posted Under:


Back 1 Next
Articles Per Page:

Best Home Buying Guide for the Clearwater Area

In this free eBook we'll discuss:

  • Mortgage Loans
  • Home Inspections
  • Benefits of Home Ownership
  • Tax Breaks and write offs
  • Total Monthly Costs
  • Down payment needed
  • How to submit an offer
  • Best schools & safest areas
Get the eBook now!
Error Submitting Form:
Processing, please wait.