Trump’s Surprising Victory Sent Mortgage Rates Up

A surprising Donald Trump victory over Hillary Clinton sent interest rates on a dizzying Mario Kart ride Tuesday night and into Wednesday. They plunged for a few hours, then roared upward. That’s where mortgage rates ended up on Wednesday: Higher.

“The market doesn’t like uncertainty, and the market had a Clinton win baked into its forecasts,” says Rick Sharga, executive vice president of Ten-X, operator of Auction.com.

Mortgage rates tend to move up and down with yields on the 10-year Treasury note. On Wednesday afternoon, the 10-year note yielded 2.01 percent, its highest level since late January. The yield was 1.83 percent a day earlier. That’s an unusually rapid rise.

Mortgage rates this week

The 30-year fixed mortgages in this week’s survey had an average total of 0.23 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 3.78 percent. This week’s rate is 0.05 percentage points lower than the 52-week average.

• The benchmark 15-year fixed-rate mortgage rose to 2.97 percent from 2.96 percent.
• The benchmark 5/1 adjustable-rate mortgage rose to 3.15 percent from 3.14 percent.
• The benchmark 30-year fixed-rate jumbo mortgage fell to 3.73 percent from 3.74 percent.

Information courtesy of:

Banrate.com