The average 30-year fixed-rate mortgage (FRM) spiked to 3.95 percent, from 3.77 percent, according to the Mortgage Bankers Association.

·        This is still lower the 30-year FRM of 3.97 percent recorded last year at this time.

·         Economists say the anticipation of Trump's pledged spending plans and tax cuts have investors anticipating some inflation and a dose of adrenaline to the economy -- and therefore there's been some market volatility.

·         Some real estate agents are seeing consumers reacting to the increases with a sense of urgency by locking in rates and resuming negotiations.

Historically low mortgage rates have been the spoonful of sugar helping buyers swallow steep home pricesbidding wars and scant affordable housing this year.

Then, in a fever pitch, rates jumped 20 basis points immediately after last Tuesday’s news amid a wacky post-election bond market. (The 10-year Treasury note, which had for six months hovered around 1.80 percent, grew to 2.07 percent — the highest reading since last January.)

 

“This week’s increase in mortgage rates, being dubbed the ‘Trump Tantrum,’ is the biggest one week increase since the ‘Taper Tantrum’ in June 2013,” said Bankrate’s chief financial analyst Greg McBride in a statement, referring the surge in U.S. Treasury yields and subsequent panic a few years ago.

But the anticipation of Trump’s pledged spending plans, particularly in the infrastructure realm, and tax cuts have investors anticipating some inflation and a dose of adrenaline to the economy — and therefore pulling money out of the bond market.

On the other hand, some real estate agents are seeing consumers to reacting with a sense of urgency in the immediate aftermath of rate change — to lock in a good rate before it’s too late.

If you would like to discuss your own plans to take advantage of this still low rate before they continue to move up, call me today.
(Jim-813-477-2090)

BY CAROLINE FEENEY  STAFF WRITER, Inman news