fbpx
22121 Canyon Crest Dr Mission Viejo, CA 92692 +1 949-632-4347

Mortgage Rates Stay Higher Despite Elections and Fed

Mortgage Rates Stay Higher Despite Elections and Fed

Mortgage rates surged last week thanks to an exceptionally strong jobs report. Even though there wasn’t anything as threatening in the current week, rates failed to make much progress back in the other direction.

Investors were focused on election results where the Democratic victory in the House temporarily helped rate early in the week, but the benefit was short-lived. The Fed released its policy announcement without making any major changes. Some investors hoped they’d acknowledge the recent market volatility. When they didn’t, both stocks and rates lost ground.

All this may be much ado about nothing, however, as the net effect of this week’s trading was effectively a “pass” from both sides of the market. After the 3-day weekend, there will be some important inflation data next Wednesday that could serve as the next major cue for interest rates.

Mortgage rates had a bad week and an especially bad day following a much stronger-than-expected jobs report. The Employment Situation (the most important piece of labor market data and arguably the most important economic report as far as interest rates are concerned) showed the highest pace of wage growth since before the recession and a surprisingly robust addition of new jobs in October. Strong jobs data is the nemesis of low interest rates and today was no exception.

Related articles

Beazer counts on lender competition to constrain rising mortgage rates

Beazer counts on lender competition to constrain rising mortgage rates

Beazer Homes USA is working to encourage competition among its approved lenders in order to help control upward pressure on home prices and lending rates that could slow sales. “We realize that affordability is a major concern,” President and CEO Allan Merrill said during the company’s earnings call for its […]

Learn More
Tips on How to Pay Your Mortgage on Time

Tips on How to Pay Your Mortgage on Time

While buying the perfect home can be a dream come true, paying for the mortgage that might come with it can be a very daunting task, especially if you need to settle hundreds of thousands of dollars’ worth of debt. Still, that doesn’t mean you won’t be able to take […]

Learn More
Can You (Truly) Afford Your Home?

Can You (Truly) Afford Your Home?

Here’s a Catch-22: As we know, the housing market in 2008 took a major downturn, and many Americans quickly discovered that their mortgage balances exceeded what their homes were worth. In other words, they were “underwater.” The sliver of hope for most households was that the economy would improve, boosting […]

Learn More

Leave a Reply

Your email address will not be published.