Mortgage Lenders Struggle to Adapt to Rapidly Rising Interest Rates
The rapid rise in interest rates since Election Day is taking a toll on the mortgage market, and lenders are scrambling to adjust.
Since Donald Trump’s surprise victory, average rates for a 30-year, fixed-rate mortgage have leapt by more than half a point, to 4.18% on Wednesday. Rates still remain low by historical standards, but are now at their highest level since June 2015, according to MortgageNewsDaily.com.
"Expect some major pain in the housing market, especially for new home construction. If inflation rate picks up and mortgage lending rates continue to increase we could see some lack luster home sales next spring. It will also put a squeeze on the home builders if construction cost go up while the average home loan decreased meaning home builders will have to take less profit per home or build homes with less material costs aka. smaller homes. Either way it looks like the last couple of months this year will be setting up Donald Trump for tough economic conditions in 2017."
(Jsnip4 has some good commentary on this article too)
Nice! Upvoted and Resteemd~!