Mortgage rates rise following Trump win

CCTV News

Mortgage rates rise following Trump win

Rates are going up on loans for buying a home. Rates for a 30-year fixed mortgage in the U.S. are up about half a percent since the country’s presidential election. The rise is being tied directly to Donald Trump – and his perceived impact on the U.S. economy.

CCTV America’s Roza Kazan reports the story.
Follow Roza Kazan on Twitter @rozakazancctv

Mortgage rates rise following Trump win

Mortgage rates rise following Trump win

Rates are going up on loans for buying a home. Rates for a 30-year fixed mortgage in the U.S. are up about half a percent since the country’s presidential election. The rise is being tied directly to Donald Trump – and his perceived impact on the U.S. economy. CCTV America’s Roza Kazan reports the story.

Average rates on a 30-year mortgage rose to 4.03 percent this week, according to mortgage giant Freddie Mac. That’s about a half a percentage point higher from the average on Election Day.

“Originally everyone freaked out – the Tuesday night that he was winning, the market dropped 800 points in overnight trading,” Paul Stepanovich, Real Estate Analyst said.

The stock market that is – reacting to the shock victory of now U.S. President-elect Donald Trump. But since then – it’s been full steam ahead.

With the Dow closing above 19,000 points for the first time in its 120-year history on Tuesday.

The sentiment here on Wall Street literally changed overnight – after the U.S. election. The stock market has smashed one record after another, leading to rallies across all three major indexes since Trump won.

And mortgage rates are tied to Treasury bonds, so when yields go up, so do the rates on loans for home-buying.

The last shock that shook the markets came from the U.K.’s decision to leave the EU, the so-called Brexit. Investors then fled to the safety of U.S. government bonds driving down yields and mortgage rates.

It’s the complete opposite this time around.