Latest Financial Forecast from Major Bank

Mortgage rates have climbed since the election on inflation fears in anticipation of renewed economic growth now that there is a pro business President in the White House along with both houses of Congress being controlled by the same party. The yield on the 10 year note has risen from 1.77 prior to the election to 2.35 today.

This has caused rates to rise by .375% to .50% depending on the loan program. It is important, however, to realize that these rates are now about where they were at the first of the year and remain at historical lows. Still, it would be wise for any potential buyers to look to make their move sooner rather than later as waiting is likely to only cost them money.

As for economic reports from the week, they were all positive. Retail sales for October rose, factory production was up, Housing starts were at a 9 year high, and initial jobless claims were at a 43 year low. PPI which measures inflation at the wholesale level was flat while CPI, which measure inflation on the consumer level was up. On top of all of that Federal Reserve Chairwoman Janet Yellen, in a speech this week, reinforced the likelihood of another increase in short term rates when the board meets next month. An increase in that rate will affect rates on things like home equity loans, car loans, personal loans, etc. Any way you look at it, the cost of money is gradually rising and home buyers really need to take note.

(Courtesy of Wells Fargo)

E-mail Sign Up

Property Search

FacebookTwitterGoogle PlusLinked InYouTube