Mortgage Rates following the Election

Mortgage rates were slightly higher today from Friday. The Dow soared this morning after news from Pfizer of a successful vaccine for Covid-19. The Dow closed up a whopping 834 points on this good news. The markets also seemed to respond favorably to Biden winning the election and becoming our 46th President.

Mortgage rates are based on mortgage backed securities (bonds) which tend to perform better when times are more uncertain. Bonds tend to provide safety over returns. So when stocks are doing great, investors may pull funds from bonds to invest back into stocks. This causes mortgage rates to trend higher.

If we continue to have good news, such as a vaccine for Covid and having the pandemic better managed, then we may see mortgage rates start to trend towards a more “normal” rate instead of the extreme lows we have been experiencing. Good news tends to be not so good for mortgage interest rates.

Bottom line, if you have been thinking about refinancing, I would not put it off too long! Mortgage rates are still very low and tend to rise quicker than they come down.

If your home is located anywhere in Washington state, I’m happy to help you! You can start a loan application by clicking here.

Speak Your Mind

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: