Rates on mortgages Sky rocket Post Election -

Interest rates surged following the election of Donald Trump last Tuesday. The common 30-year fixed-rate mortgage rose to 3.95% last week, up from 3.77% the week prior, the Mortgage Bankers Association reported Wednesday.

Rates on mortgages Sky rocket Post Election

Because of this, mortgage applications – for both refinancing s and home purchases – plunged 9.2% last week. But despite this post-election dip, applications remain 12 % higher than a last year, MBA reports.

“Following the election, mortgage rates saw their biggest week-over-week increase since the taper tantrum in June 2013, and reached their highest level since January of this year,” says David Stevens, president and CEO of the Mortgage Bankers Association. “Investor expectations of faster growth and higher inflation are driving the jump-up in rates, and rates have now increased for five of the past six weeks, spurring a commensurate drop in refinance activity.”

Refinance applications dropped 11% on a week-to-week, seasonally adjusted basis, plunging to the lowest level since March, MBA reported. Refinance volume remains 19% more than exactly the same week a year ago.

“It is no surprise that refinance volume has fallen, as the long boom has meant that there are fewer borrowers with any incentive,” Stevens says. “We continue to expect strong growth in home sales and purchase volume over the next few years, given our expectations of a strong job market and favorable demographics. The decline this week likely just reflects potential buyers waiting to see whether rates will stay at these higher levels.”

Loan applications for home purchases dropped 6% last week. They are now at the lowest level since January, however they remain 3% higher than a year ago.

Nick & Cindy Davis work with several lenders that can assist you with all your financing needs for your home purchase here in the Tampa Bay and Surrounding Areas, to get started give us a call at 813-300-7116 or simply click here and we will be in touch.

Take a look at a few of the most recent homes that came on the market here in the Tampa Area.

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12425 N Florida Avenue, Tampa, FL

12425 N Florida Avenue
Tampa, FL

$102,000
- Lot Size
  
  16,553 sqft
- Home Size
  
  3,754 sqft
- Beds
- Baths
- Year Built
  
  1980
- Days on Market
  
  2