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    Home»Buying a Home»Mortgage Rates Climb Back Up Post Brexit
    Buying a Home

    Mortgage Rates Climb Back Up Post Brexit

    Chris HamlerBy Chris HamlerDecember 8, 2016Updated:January 13, 2017No Comments2 Mins Read
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    The US Election Decision that put a Republican leader into office certainly ramped up mortgage interest rates months after Britain voted out of the European Union. After what has been a highly intense week, interest rates climbed to the 4 percentile mark, a 0.5 percent rise since the election season kicked in. That puts this month as one of the worst in more than a decade.

    There’s a looming uncertainty over the economic future of the country under the Trump administration. This surge in rates reflects that scruple, as investors and financial markets recalibrate their expectations for the nation’s financial future.

    Breaking Brexit Records

    As a result, a higher mortgage rate environment is expected to settle as the new normal, with the latest polls putting the conventional 30-year fixed rate to 4.125%.

    In its November 17 report, Freddie Mac reported the 30-year FRM to average at 3.94 percent, an enormous jump from last week’s 3.57 percent. The 15-year FRM on the other hand averaged 3.14 percent, another increase from last week’s 2.88 percent. Meanwhile, the 5-year Treasury-indexed hybrid adjustable rate mortgagefinished with a 3.07 percent average from last week’s 2.88 percent.

    Click here to see today’s rates.

    “Last week’s election fell in the middle of our survey week, making it impossible to determine how closely the mortgage rate would track the post-election sell-off in the Treasury market,” says Freddie Mac Chief Economist, Sean Becketti. “This week, the verdict is in — over the last two weeks the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield. If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.”

    What does this mean for buyers and homeowners?

    If you are looking to buy a home or refinance, it might be a good time to lock in before rates hike further. If you are qualified for government-insured mortgages, take advantage of that option. Remember that Freddie Mac’s rates are optimum for A+ borrowers with excellent credit. Lender rates may vary. Make sure you have examined your choices first before settling into a mortgage program.

    Click here to get matched with a lender.

    Chris Hamler
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