The 2016 presidential election is behind us, and with its conclusion comes questions about what a new president will mean for the mortgage market. While it’s impossible to predict with certainty what will come to pass, economic analysts are keeping a close eye on what has already happened to the stock market and bond yields in the few short days following the election.

When it comes to the mortgage industry, the primary concern tends to be interest rates. According to MortgageNewsDaily.com, the average interest rate for a 30-year fixed-rate mortgage has already spiked a quarter of a percent in only a few days following the election results.

Since Donald Trump has been known to be business oriented, his election led to a transfer of more than $1 trillion across bond markets worldwide to be reallocated into stocks. With Trump’s victory, uncertainty is hanging in the air, and this environment favors stocks over bonds. Typically, when the stock market does well, bonds do poorly which leads to higher interest rates. This explains the average 3.87% interest rate that potential homebuyers are now seeing as of last Tuesday, which is up from approximately 3.6% the week before.

What Does All This Mean for You?

While lenders and potential homebuyers may see higher interest rates in the near future, they are still at historic lows when compared to past averages. Long story short, locking your rate now may protect you from potentially higher rates in the coming months and throughout 2017.  Call us today or apply online to speak with an expert and find out how we can help you through this changing market.