Mortgage Rate Weekly Update for November 14, 2016
Mortgage Rate Weekly update for the Week of November 14, 2016 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote
Mortgage Rates Spiked Higher after Donald Trump was elected the new President of the United States. If you look at the bond chart below you can see mortgage bonds broke through support at the 200 day moving average on Tuesday Election day. This was a bad sign for bonds and on Wednesday bonds follow through by selling off again and breaking through 2 more floors of support to end down almost 100 bps. Thursday mortgage bonds again sold off and broke through 2 more floors of support. This is very bad technical data and bonds more room to sell of before hitting the next floor of support. Mortgage Rates moved higher as the market priced in the risk of a Donald Trump Presidency with his stated policy anticipating a rise in inflation. Inflation is bad for fixed investment assets like bonds so bonds sold off in dramatic fashion jumping mortgage rates anywhere from 0.25% to 0.5% higher depending on your qualifying factors. We recommend to LOCKING your mortgage rate as interest rates could continue to rise as the market digests what affect a Trump Presidency will have on the markets.