The graph from this morning’s PMMS report illustrates the dramatic jump in mortgage rates that happened following last week’s Presidential election. Mortgage rates, although still low, haven’t been in this range since January 2016.
Freddie Mac reports that last week, the 30 year fixed rate averaged 3.94% with 0.5 points. This is 40 bps higher in rate than what was reported the previous week for an average rate.
The evening of the election, I was fully expecting to see rates drop with how the markets were plummeting after hours. However with the quick recovery after the morning bell, the Dow and mortgage rates took off. In my opinion, mortgage rates will be bumpy while we go through the adjustment of our new President. Mortgage rates tend to be higher when a Republican holds the office. And I believe that had the Democrat party won, we would still see rates rise as they have been in position to do so for quite some time.
If you’ve been sitting on the fence with your refi, now is the time to hop off and get your refi application going! If your home is located anywhere in Washington state, I am happy to help you. Click here for a mortgage rate quote or here to start an application for a refi or home purchase.