Mortgage interest rates have climbed nearly 0.2% since the election of Donald Trump as the country's next President, to 3.95% for 30-year fixed-rate mortgages of $417,000 or less according to Realtor.com's Clare Trapasso. That’s the highest they’ve been since January. So, should buyers be jumping at the chance to buy homes now before the rates start skyrocketing? Or could they fall as Donald Trump takes office? Trapasso talked to industry experts, and writes:
“If your intention is to buy a house, you need to start looking for it now,” says Don Frommeyer, CEO of the National Association of Mortgage Brokers. “With the new administration, we don’t have any idea what’s going to happen with new rules and laws and changes that could be made.” Although rates may continue to rise, they’re not expected to keep shooting up.
“We are expecting rates to go up next year,” says realtor.com®’s chief economist, Jonathan Smoke. But he adds, “I doubt we will see much additional movement before the end of the year.”
Many buyers are clearly spooked, as evidenced by the number of mortgage applications dropping by about 10%, according to the association’s Market Composite Index, which uses numbers that are not adjusted for seasonal fluctuations. Meanwhile, refinance requests from existing homeowners fell about 11% as the lower rates they were hoping for dissipated.