What's Up Interest Rates in 33 Words?
Let me emphasize, this is not a political post.
The markets feel that President-Elect Donald Trump is a positive for the economy. The better the economy is the higher mortgage rates are. The worse the economy is the lower rates are. (That was just the 33 words…).
Over the past 8 business days a 30-yr fixed rate has increased on average from 3.590% to 4.000%. As a result a buyer who qualified for a $1M home on Friday 11/04 lost about $40k in their purchase power. They now qualify for a $960k purchase price. Don't forget this affects people selling too.
If you're sitting on the fence, you're losing purchasing power quickly. It's definitely time for you to get approved for financing and in your home before the rates jump even higher (which they are expected to do)! Of course, we can help you with both👍.
Attached is a graph and breakdown of the rates early last week. The market is changing rapidly and there were more increases at week's end. If you are thinking of selling, remember that this also affects how much you can sell your home for.