The Wait is Over
One of the most anticipated weeks of the year comes to a close. A blockbuster double header with familiar names leading the ticket.
Trump. Powell.
Results are in. The people have spoken. Decisions made.
Now what?
Many people have asked me what a Trump administration will do for mortgage rates? I am not one to predict, I'll leave that to the economists and market experts.
The textbooks tell us that some of the anticipated policies may drive up rates. Tariffs bring higher prices, tax cuts could lead to larger deficits and decreased regulation can bring higher risk — all driving the bond market and mortgage rates in the opposite direction.
That textbook got slammed on the desk in front of us Wednesday morning with treasury yields and mortgage rates rising to start the day.
Mortgage rates and treasuries have since taken a breather, with investors digesting results and a somewhat unsurprising set of results and commentary from the Federal Reserve.
Another .25% reduction. As expected. Fed Chair Jerome Powell shared the committee's unanimous decision to drop rates with their next and final meeting of the year on December 17-18. Expectations are for another cut in December.
Interest rates have cooled a bit since their 6 week rise with averages right around 7% depending on how they are displayed.
What does this mean for homebuyers that have put their home searches on hold waiting for the election and for the Fed to reduce rates?
If there is anything this election has taught us it's that we can throw textbooks out the window.
Human beings make purchase decisions based on emotion.
Did you see the Dow Jones surge 1,400 points in one day to record highs?
What did that do for your emotions?
What do you think it did for the average American who's #1 issue has been the economy?
The 13 round battle to bring back housing is far from over but we'll take this round for sure.
