Post-Election Aftermath: Stock Market Boom, Bond Market Bust
Overshadowed by all the political fallout the last week is the election’s effect on interest rates: up, quickly.
According to Edina Mortgage’s Steve Mohabir, subsequent to the election, interest rates for a 30-year mortgage for well-qualified borrowers jumped a huge (“Yuge??“) 50 basis points, from 3.5% to over 4%.
Too Late to Lock
What effect does that have on the housing market?
At least in the short run, it squeezes home buyers who are under contract to close on a home in the next 6-8 weeks, but hadn’t yet locked on their mortgage.
Question #2: where are rates headed from here?
I have no idea, but often times after such a big interest rate move, there’s at least a partial backtracking/retracement . . .
