Interest Rates Post-Election

I don't know who thought it was a good idea to lump the election, daylight savings, and Halloween all into the same week, but I am tired. And I know you are too; sending a little extra love to everyone out there today.

If you've been keeping an eye on the market and mortgages this week, you'll notice the markets roared and mortgage rates increased. But if the Fed cuts rates, doesn't that mean interest rates go down too? Not exactly. The two are mutually exclusive. Despite how often mortgage and interest rates are discussed together, they aren’t directly linked. The interest rate is more so tied to the 10-year treasury yield. And the 10-year spiked this week in response to the election outcome with fear of future inflation. The average rate for a 30-year fixed mortgage was 6.79% as of yesterday, according to Freddie Mac. Also, is it a seller’s or buyer’s market? Neither. And I wouldn't hold your breath for lower rates unless a miracle happens. Economists anticipate rates staying the sale or inching up a little higher. 

With that said, I wish I had better news on the mortgage front. I'll continue to keep everyone abreast. 

If you want to talk more about interest rates, homeownership, or what it looks like to sell your home in this climate, attend our upcoming virtual workshop on 11/20 at 6 PM. RSVP here!