Since the election on November 8, numerous articles have appeared in a variety of periodicals, addressing the current rise in mortgage interest rates and predicting future rate activity. In a NEW YORK TIMES article by Patricia Cohen and Conor Dougherty titled “Mortgage Rate’s Rise Catches Home Buyers—and Lenders—Off Guard” which was published on November 23, 2016, the authors noted that, “Since the election mortgage rates have climbed roughly half a percentage point to a 16-month high.”
Annamaria Andriotis, in a WALL STREET JOURNAL article titled “Mortgage Applications Soar 13% as Buyers Act Before Rates Rise” (published November 23, 2016), quotes Greg Gwizdz of Wells Fargo Home Mortgage as stating, “From the facts we see out there, it looks like rates are going to settle at a higher rate that they did in the last few years.”
Many other recent articles have forecast that the Federal Reserve will raise short-term interest rates in December. One example is the WALL STREET JOURNAL article by Harriet Torry published on November 14, 2016, the title of which was “WSJ Survey: Most Economists See Fed Raising Rates in December, In Wake of Trump’s Election”.
There is currently uncertainty as to where mortgage rates may go. Individuals considering purchasing a home in the near future should be as informed as possible about the current economic environment and understand how specific changes in interest rates can affect their future monthly payments. If you are considering purchasing a home, this would be a good time to contact several reliable mortgage professionals to discuss how you can you make decisions that will best meet your personal and financial needs.