According to Freddie Mac, The rate for a 30-year fixed rate mortgage shot up to an average of 3.94% last week, up dramatically from the 3.57% measure the week before. Redfin staffer Alex Starace takes a look at what these rising mortgage rates will mean going forward for the housing market.
Starace points out that the Trump presidency has already affected mortgages and Wall Street is now anticipating higher economic growth and inflation in 2017. However, the raise in rates is not expected to be high enough to significant affect the plans of consumers:
"...Rates are just one of them. In that sense, it’s the economic basics of everyday life – job relocation, family changes, lifestyle preferences, desire for more highly ranked schools and shorter commutes – that will continue to be the key drivers of a family’s decision to buy or sell, regardless of who resides in the White House.”