Mortgage Rates rose today as early presidential polls showed Clinton leading in several battleground states. At least when it comes to the most immediate future, rates have done better when Trump’s numbers have been better. Some analysis suggests that although a Trump presidency could ultimately be worse for rates in the long run, the near-term uncertainty prompts investors to sell stocks and buy bonds. When demand for bonds increases, rates move lower, all other things being equal.
Mortgage rates didn’t have to move too much higher in order to make it to new 5-month highs. If we’re talking about the actual “note rate,” that hasn’t changed for most prospective borrowers at all this week. Rather, the changes must be measured in the form of upfront closing costs/credits. Higher upfront costs make for a higher “effective rate,” even when the note rate remains unchanged. Most lenders continue quoting 3.625% on top tier conventional 30yr fixed scenarios.
Even before today’s market volatility, the risk of floating outweighed the potential reward. After today, that’s doubly true. Bottom line, even if rates are able to stage a comeback after the election is over, it doesn’t make sense to plan on it. We need to see a solid reversal in the ongoing trend before deviating from a defensive strategy.
|Wilson Bank & Trust||4.020%|
|Pinnacle National Bank||3.521%|
|First South Bank||4.019%|
* The above mortgage loan information is provided to, or obtained by, Bankrate. The rate is based on 30 year fixed rate mortgage and a loan of $300,000. Rates change often and your personal rate may differ from the above number based on your qualifications. To see more rates from Bankrate, click here.